On Matcha.xyz, the Liquidity Score is a feature that measures the depth of liquidity for a token across all connected decentralized exchanges (DEXs).
Where can I find the Liquidity Score?
The score can be found in the Token Header section of the Token Page, and a larger breakdown is found near the bottom of the Token Page.
What does the Liquidity Score mean?
The Liquidity Score indicates how many tokens are available at the displayed price and how large a trade the market can handle without causing a price impact of 2.5% or more.
What do the numbers mean?
Here's a breakdown of the numbers :
Score of 1: Indicates only $100 worth of tokens are available within 2.5% of the market price.
Score of 5: Means $100,000 worth of tokens are available.
Score of 7 and above: Indicates that you can safely trade $1 million or more without paying more than 2.5% above the market price.
Is the Liquidity Score 100% accurate?
The Liquidity Score is data that measure a token’s depth (in USD) across all DEX markets at a snapshot in time. Automated scans like this one are not always completely accurate and the measurement is stored for 5 minutes.
A token with a high Liquidity Score can become illiquid within the timespan of a single block. The Liquidity Score is not legal or investment advice and should be considered along with other factors.
We always recommend that users do their own research and consult multiple sources of information before making a decision.
Summary
The Liquidity Score gives traders a snapshot of liquidity depth (in USD) across all DEX markets, to get the best possible trade execution. However, it's important to note that liquidity can change rapidly, and scores are updated periodically.