Respectfully, I don't really feel like engaging with this conversation because it seems like we don't have the same basic starting points.
> The cost of liquidity is instability (volatility)
Just research it. Liquidity doesn't cause volatility, it's the opposite effect: illiquid markets lead the real underlying price to be largely different than the market price, leading to massive jumps.
> The cost of liquidity is instability (volatility)
Just research it. Liquidity doesn't cause volatility, it's the opposite effect: illiquid markets lead the real underlying price to be largely different than the market price, leading to massive jumps.