> For the complete documentation index, see [llms.txt](https://docs.fyda.fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.fyda.fi/trade-engine/liquidity.md).

# Liquidity

Fyda employs a distinctive approach to liquidity management, leveraging existing on-chain Automated Market Makers (AMMs) and decentralized exchanges (DEXs) rather than maintaining its own. Our strategy centers around the aggregation of liquidity from diverse sources within the DeFi ecosystem.\
\
Additionally, Fyda empowers users to create their own liquidity contracts, offering greater flexibility and control over their DeFi transactions.