Cryptocurrency, also known as ‘crypto currency’ or ‘virtual currency’, refers to a digital asset designed to work as a medium of exchange that uses cryptography for security and anonymity. It is a known fact that the liquidity problem is one of the most pressing issues for the cryptocurrency ecosystem. People tend to see this as a major disadvantage in all types of asset trading, and it’s not hard to see why — limited liquidity can have a drastic impact on price volatility and lead to significant draw-downs.

In theory, up to 30% of all cryptocurrencies can be traded each day, with some exchanges handling more than 80% of daily trades. However, in practice, prices will continue to fluctuate due to liquidity issues.

To solve this implicit problem, Pigou (1912) proposed a simple idea: Prices in an economy are determined by the value of goods and services, not the time to wait for them to be produced. Using Pigou’s theory, it is possible to price cryptocurrency through adjusting prices based on public knowledge of the quantity and distribution of money in the economy. This would also solve issues related to what will be the next block mined in order for cryptocurrency to become an official tender.

A blockchain would be required alongside with a cryptocurrency to make this desired goal a reality.

In a liquid market, prices are stable enough to withstand large orders because of the large number of market participants and their orders. And while high liquidity ensures that prices are stable and not prone to large swings resulting from large trades. This could affect cryptocurrency prices while fuelling increased volatility and risks for the general market. Similarly, low liquidity, on the other hand, may cause investors to sell their crypto holdings prematurely in order to cash out.

Further, it is a well-known fact that prices can move quickly in cryptocurrency markets. And as we now are well aware of what problem can liquidity deficit cause. Cryptoneur Network Foundation (or CNF) aims at resolving these with the help of CNF Token. Soon, CNF will allow users to swap TRC-20 tokens. This further can be used to represent a wide array of digital assets as well as financial values.

TRC-20 is an open, transparent, and convenient token standard for the TRON ecosystem. TRC20 defines the rules that need to be followed in order to create a new token with the TVM (Tron Virtual Machine). TRC‌-20 tokens are different than Ethereum ERC-20 tokens. Whereas ERC-20 tokens perform strict actions using simple codes, TRC‌- 20 is more sophisticated, supporting self-management and complex operations like transferring data or setting trading conditions.

Fundamentally, CNF will run on two smart contracts; an “Exchange” contract and a “Factory” contract. This, in a pair, will represent the assets deposited in that pool. In this instance, the factory smart contract will be used to add new tokens to the platform and the exchange contract facilitates all token “trades.” On full functionality, any TRC20-based token can be swapped with another on the associated platform (proposed).

Do note that TRC‌-20 tokens are different than Ethereum ERC-20 tokens because they support self-management and complex operations like transferring data or setting trading conditions.