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1. Enhance price stability for market so that investor can ramp up position or sell great amount of digital asset with small impact to the market.
2. Help institution client to manage their digital assets easily include buy, sell and hedging position .
3. Tremendously reduce price slippage.
4.Steep and wide order book . Example, BTCUSDT-perp contract(Binance). You can see in price range of 2% can absorb the 82+76 = 158 million usd which is a lot compare to some equity market. BTCUSDT alone can be more liquid than a whole illiquid market. So, institution, hedge fund , retail trader can easily get in and take position with small percentage of price slippage.
4. Trust from all participants. If assets come with thin and wide gap of price. This could lead to untrusted market. With thin order book , experience trader can't take huge amount of position because of risk of trade is significantly increase when their take wrong bet and have to cut their loss. example trader buy BTC/USDT at ask price 35,700 and then price slip to 35,600 .What if the best bid is 35,000 ?. If trader cut loss at bid price(35,000) ,they suddenly lost 2% . In contrast , in healthy market, BTC/USDT price best bid/ask should be 35,599.8/36,000 . In this case, trader lost 0.27% (100.2/37,000) .
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