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Bullish on liquidity

Insights Feb 28, 2022 3 min read

The importance of liquidity to financial exchanges cannot be overstated. It underpins the ability to trade confidently or capitalize on market fluctuations at key moments. And even as the total volume traded on digital asset exchanges has grown exponentially in recent years, we have seen little done to improve access to deep and predictable liquidity. Until now.

Learning from Central Limit Order Books (CLOBs)

Most centralized exchanges implement high-performance Central Limit Order Books (CLOBs), which are subject to regulation and allow users to trade directly with each other in a real-time, low-cost environment. 

To make these matches, however, centralized exchanges often rely upon external market makers to provide liquidity on their order books. What’s more, in our view, these exchanges have probabilistic liquidation algorithms that don’t always speak to their order book depth. That means during bouts of volatility — often the case in cryptocurrency trading, bids and offers are canceled as market makers remove liquidity when prices are uncertain. 

And the liquidity issue is amplified even more when you consider how it’s often fragmented across multiple exchanges. That means when you are interfacing with a single exchange, we believe in a similar fashion to equity markets, you are potentially transacting with liquidity that may live on a different venue and paying any fees and/or spread to get it to your exchange. 

All of this results in a potentially expensive, inherently inefficient, and highly unpredictable landscape. 

Building off the rise of DeFi and DEX

The rise of Decentralized Finance (DeFi) in part speaks to the desire to eliminate any rent-seeking layers to help drive more value back up to the end users. This trend is further backed by the fact that   Decentralized Exchanges (DEX’s) reported more than $1 trillion in trading volumes in 2021 which is a 8x+ increase on the previous year according to The Block Research. Automated market makers (AMMs), which are powered by liquidity pools, arguably the greatest advantage of DEX, allow customers to trade with less slippage, even in highly volatile times. That’s because liquidity pools — usually consisting of an equal ratio asset pair, such as BTC/USD or BTC/ETH — provide liquidity at prices calculated deterministically based on the size of the liquidity pool and the ratio of the assets within. 

Some liquidity pools asymptotically increase the price of a token as the desired quantity increases. How much the price moves is dependent on the size of the trade in proportion to the size of the pool, which means deeper pools have less of an impact on asset price with each trade made. Slippage is significantly reduced even when the market is volatile. 

The rise of DeFi and liquidity pools may have improved the cryptocurrency trading landscape, but DEX exchanges are not without their flaws. Trader profits can be hampered on DeFi exchanges by complex smart contracts that facilitate transactions. As each contract, or string of smart contracts, can trigger high gas fees, traders often have to deal with higher costs. Transactions either become prohibitively expensive as users bid to be one of the few transactions included in a block. All while being left exposed to risks of  a lack of compliance, regulation, and security. 

While the anonymity of a DeFi exchange might represent a value proposition to some, it’s often a limitation for institutional money looking to safely access this emerging space. So, what’s next?

Delivering the next evolution of the exchange

With Bullish, we redesigned the exchange with institutions and advanced retail clients in mind. The goal was to combine the best of CLOB and DEX to benefit asset holders and empower traders.

We call it the Bullish Hybrid Order Book. It combines the high performance and security of a CLOB with the deterministic liquidity across market conditions of automated market making. 

Predictability and deep liquidity

The Bullish Hybrid Order Book is powered by our deep and predictable Bullish Liquidity Pools, which are backed by multibillion-dollar contributions from the Bullish Treasury. Our pools are designed to reduce slippage, helping to provide stability during bouts of volatility. 

By building the proprietary Bullish Hybrid Order Book, we have enabled customers to trade at scale with low fees and stable liquidity, while they maintain consistent market access in a secure environment.

Discover more about the Bullish Hybrid Order Book


[email protected]

[email protected]

[email protected]


About Bullish

Bullish is focused on developing products and services for the digital assets sector, and its flagship product, Bullish exchange, has rewired the traditional exchange to benefit asset holders, enable traders and increase market integrity. Supported by the group’s treasury, Bullish’s new breed of exchange combines deep liquidity, automated market making and industry-leading security to increase the accessibility of digital assets for traders. Bullish exchange is operated by Bullish (GI) Limited and is regulated by the Gibraltar Financial Services Commission (GFSC) (DLT license: FSC1038FSA). For more information, please visit or and follow Twitter and LinkedIn.

About Far Peak Acquisition Corporation

Far Peak Acquisition Corporation was formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination in the financial technology, technology or financial services industries. The Company is sponsored by Far Peak LLC, which is ultimately owned by Thomas W. Farley, the Company’s Chairman and Chief Executive Officer, and David W. Bonanno, the Company’s Chief Financial Officer.

Forward-Looking Statements

This communication includes, and oral statements made from time to time by representatives of Far Peak Acquisition (‘FPAC”) and Bullish may be considered, “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events or FPAC’s or Bullish’s future financial or operating performance. In some cases, you can identify forward-looking statements by terminology such as “may,” “should,” “expect,” “intend,” “will,” “estimate,” “anticipate,” “believe,” “predict,” “potential” or “continue,” or the negatives of these terms or variations of them or similar terminology. In addition, these forward-looking statements include, but are not limited to, statements regarding Bullish’s business strategy, cash resources, current and prospective product or services, as well as the potential market opportunity. Such forward-looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from those expressed or implied by such forward looking statements. These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by FPAC and its management, and Bullish  and its management, as the case may be, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: (1) the occurrence of any event, change or other circumstances that could give rise to the termination of the definitive agreements respecting the pending business combination of FPAC and Bullish (the “Business Combination”); (2) the outcome of any legal proceedings that may be instituted against FPAC, Bullish or others; (3) the inability to complete the Business Combination due to the failure to obtain approval of the shareholders of FPAC or to satisfy other conditions to closing; (4) changes to the proposed structure of the Business Combination that may be required or appropriate as a result of applicable laws or regulations; (5) the ability of Bullish to meet applicable listing standards following the consummation of the Business Combination; (6) the risk that the Business Combination disrupts current plans and operations of Bullish as a result of the announcement and consummation of the Business Combination; (7) the ability to recognize the anticipated benefits of the Business Combination, which may be affected by, among other things, competition, the ability of the Bullish following the Business Combination to grow and manage growth profitably, maintain relationships with customers and suppliers and retain its management and key employees; (8) costs related to the Business Combination; (9) changes in applicable laws or regulations; (10) the possibility that Bullish may be adversely affected by other economic, business and/or competitive factors; (11) the impact of COVID-19 on Bullish’s business and/or the ability of the parties to complete the Business Combination; and (12) other risks and uncertainties set forth in the sections entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in the preliminary proxy statement/prospectus included in the registration statement on Form F-4 (the “Registration Statement”) filed by Bullish with the U.S. Securities and Exchange Commission (the “SEC”), in the sections entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in FPAC’s Annual Report on Form 10-K for its fiscal year ended September 30, 2021, as filed with the SEC on December 17, 2021, as well as any further risks and uncertainties to be contained in any other material filed with the SEC by Bullish or FPAC. In addition, there may be additional risks that neither Far Peak nor Bullish presently know, or that Far Peak or Bullish currently believe are immaterial, that could also cause actual results to differ from those contained in the forward-looking statements. Nothing herein should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. Neither FPAC, nor Bullish undertakes any duty to update these forward-looking statements.

Important Information and Where to Find It 

This document does not contain all the information that should be considered concerning the proposed Business Combination. It does not constitute an offer to sell or exchange, or the solicitation of an offer to buy or exchange, any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, sale or exchange would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. It is not intended to form the basis of any investment decision or any other decision in respect of the proposed Business Combination. In connection with the proposed Business Combination, Bullish has filed the Registration Statement with the SEC which includes a preliminary proxy statement / prospectus with respect to the Business Combination. The definitive proxy statement / prospectus and other relevant documentation will be mailed to FPAC shareholders as of a record date to be established for purposes of voting on the Business Combination. FPAC shareholders and other interested persons are advised to read the preliminary proxy statement / prospectus and any amendments thereto, when available, and the definitive proxy statement / prospectus because these materials contain and will contain important information about Bullish, FPAC and the proposed transactions. Shareholders may obtain a copy of the preliminary proxy statement / prospectus and, when available, the definitive proxy statement / prospectus without charge, at the SEC’s website at or by directing a request to: Far Peak Acquisition Corp., 511 6th Ave #7342, New York, NY 10011. INVESTMENT IN ANY SECURITIES DESCRIBED HEREIN HAS NOT BEEN APPROVED OR DISAPPROVED BY THE SEC OR ANY OTHER REGULATORY AUTHORITY NOR HAS ANY AUTHORITY PASSED UPON OR ENDORSED THE MERITS OF THE OFFERING OR THE ACCURACY OR ADEQUACY OF THE INFORMATION CONTAINED HEREIN. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

Participants in the Solicitation

FPAC, Bullish, and their respective affiliates and the directors and executive officers thereof, other members of management and employees may be considered participants in the solicitation of proxies with respect to the Business Combination described herein  under the rules of the SEC. Information regarding persons who may, under the rules of the SEC, be deemed participants in such solicitation and a description of their interests is set forth in the preliminary proxy statement/prospectus included in the Registration Statement, which can be obtained free of charge from the sources indicated above.

No Offer or Solicitation 

This communication is for informational purpose only and not a proxy statement or solicitation of a proxy, consent or authorization with respect to any securities or in respect of the potential transaction and shall not constitute an offer to sell or a solicitation of an offer to buy the securities of Bullish or FPAC, nor shall there be any sale of any such securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of section 10 of the Securities Act.

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