Lykke Updates APIs to Enhance HFT, Algorithmic Crypto Trading

Swiss blockchain company Lykke has updated its trading API to help users connect their algorithms to the cryptocurrency exchange. The company also said they have improved the overall performance of the algo trading APIs by optimizing different areas such as: reducing data backlogs, prices, book orders, balances, and active orders.

Through the trading API, third-party software can easily interact with Lykke’s trading platform. It anticipates that algorithmic trading will be one of the most popular use cases for its product.

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The updated APIs now supports gRPC protocol, which uses HTTP 2.0 Standard, WebSocket, and ProtoBuf to reduce latency, enables efficient use of the CPU, and provides access to network resources on the client’s side. As such, it helps refine their algorithms that effectively trigger trades at the best price, accounting for factors such as trade size, time of day and market status, taking much emotion and impulse out of the equation.

“The New Response of the server is no longer included in the gRPC protocol, enabling each user to work with the algorithmic trading API in their unique manner. Additionally, the contracts in the Rest API protocol also had been updated. A new set of functions and models is being used, very similar to those of gRPC protocol,” Lykke further explains.

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High-frequency trading has become a popular strategy in the crypto markets as it has been with traditional asset classes. Crypto traders use algorithmic programs to exploit price discrepancies between different exchanges. Oftentimes, HFT traders will like facilities such as Lykke’s API since it gives them an edge in speed and make off with handsome profits on arbitrage.

Lykke says goodbye to Cysec license

Lykke is a Swiss blockchain company founded by OANDA former CEO Richard Olsen. Back in July 2018, Lykke Cyprus Limited received approval from CySEC to operate as a regulated Cyprus investment firm (number 363/18). The move was intended to provide a regulatory stamp for the company’s business that is mainly focused on digital assets and cryptocurrencies.

The CIF authorization also came a few months after Lykke teamed up with Amsterdam-based start-up Nxchange to launch a regulated tokenized securities exchange. At the time, the partnership created a European venue to host traditional financial assets on blockchain technology through security tokens. It also provided secondary market ‎liquidity for ICO tokens that are offered and sold as securities.

Lykke, however, abandoned its ambitions to operate under the Cysec umbrella, and decided to say goodbye to its European authorization. The company was also among 11 financial services providers that were disbarred from CySEC’s lifeboat scheme.