ECHO Platform Use Case

Low Latency Crypto Liquidity Provider Engine and Arbitrage Trading Systems with ECHO

Objective

Our client aimed to develop an advanced, fully automated trading application capable of executing strategies as a liquidity provider and automating arbitrage trades across multiple exchanges, counterparties, and venues simultaneously. The primary goal was to create a high-performance system with ultra-low latency trading capabilities, connecting directly with liquidity providers such as Galaxy, Wintermute, and CDRW through FIX APIs provided by Reactive Markets and 4OTC. This ambitious project required the development of comprehensive trading logic and the construction of a flexible web-based user interface for seamless trading and risk management.

Solution

Leveraging the robust connectivity and advanced features of the ECHO Platform, we delivered a sophisticated solution that allowed our client to execute across numerous coin pairs on various crypto venues with unparalleled speed and precision. Our team custom-built the entire backend trading logic from the ground up, incorporating various strategies to facilitate liquidity provision and arbitrage opportunities. Additionally, we developed a feature-rich web application using React.js and Next.js, ensuring accessibility across devices, including mobile platforms. The web app incorporated advanced MUI and DevExtreme components, while Ory was employed as an external login provider to enhance security.

Implementation

  • FIX API Connectivity

    We seamlessly integrated with FIX APIs provided by Reactive Markets and 4OTC, enabling direct access to liquidity providers such as Galaxy, Wintermute, and CDRW. This integration allowed for real-time trading with ultra-low latency, crucial for liquidity provision and arbitrage.

  • Custom Backend Trading Logic

    Our team developed comprehensive trading logic leveraging ECHO's advanced trading backend capabilities. This included strategies for maker or taker optimization, executing arbitrage trades, and generating complex order structures to capitalize on spread opportunities across various cryptocurrency and forex pairs.

  • Real-time Position and Risk Management

    A key element of this application was the requirement of a real-time position and risk management system, implementing Drop Copy and various account-level position metrics. This allowed us to calculate and visually report position sizes dynamically across various coins, currencies, and venues while ensuring positions were fully hedged and managing position limit risk effectively in trading executions.

  • Web Application Development with Enhanced Security

    The web application, built using React.js and Next.js, served as a powerful interface. It offered an intuitive and feature-rich trading experience, with advanced components ensuring ease of use. The responsive design enabled access from both desktop and mobile devices. We enhanced security by implementing Ory as an external login provider, ensuring that only authorized users had access to the trading application, safeguarding sensitive trading data.

Results

By seamlessly connecting with liquidity providers and executing strategies with millisecond precision, the application facilitated efficient liquidity provision and arbitrage opportunities. The custom-built backend trading logic, coupled with the user-friendly web interface, enabled our client to manage risks, execute complex orders, and explore spread opportunities across diverse cryptocurrency pairs. This project showcased the exceptional capabilities of the ECHO Platform in delivering high-performance trading solutions for the dynamic cryptocurrency markets.