The term core liquidity provider describes the function of these firms: They may simultaneously buy and sell shares of a security with the goal of ensuring that it is always available on-demand. A core liquidity provider is also known as a market maker.
what are the sign of liquidity & illiquidity?

The illiquid market has chaotic moves or gaps in prices. The level of buying or selling volume at one moment can suddenly change.

A highly liquid market is also called a smooth market or a deep market.

Most traders need and should care about the liquid market because it is very hard to manage risk if you’re on the wrong side of a big move in an illiquid market.

Why should you care about liquidity?

As a liquidity provider, we can influence greater price stability and also improve liquidity by making it safer. Thanks to this function liquidity providers become important services. They usually take a significant amount of risk but are still able to profit from the spread or by positioning themselves thanks to conclusions based on valuable information available to them.

The importance of market liquidity

Market liquidity is very important as it impacts the speed at which you can open and close positions. As we have seen, liquid markets come with less risk so are more attractive to investors in the market. When a market is liquid, sellers can easily locate buyers. The liquidity of an asset is also one of the main aspects in determining the spread that a leveraged broker is able to offer. High liquidity indicates the existence of a large number of orders to buy and sell in the underlying market which, in turn, raises the probability that the highest price a buyer is prepared to pay and the lowest price a seller will accept will move closer together. Hence, the bid-offer spread becomes tighter. Lower bid-offer spreads result in lower spreads offered by the broker whereas if a market is illiquid, there may be a much wider spread.

Our liquidity provider system

This system aims at augmenting liquidity, via creating deep order books and preparing a tight spread from the very first day of launch without exposure to any market risk despite market making strategies that are not risk neutral and have the potential to generate revenue as well as losses. Our liquidity provider system follows a complex set off mathematical models and algorithms that use Machine Learning, Markovian models, and high-frequency trading principles to minimize risk, provide a consistent uptime, set-up parameters, and find the optimal trading strategies. Thus, the presented liquidity provider algorithm would furnish liquidity to a new market that is already liquid on other exchanges, without any market risk, ultimately resulting in encouraging trust to all participants and setting in motion positive synergies.