№ 05·0505 · Network architecture2 min read · Section 5 of 6
5.5 Distribution and Liquidity Layer
Sending results from the system to the market: systematic collaboration among stock exchanges, market makers, media, and KOLs.
Updated
5.5 · Distribution and Liquidity Layer
L4 · Distribution and liquidity layer - let the results be seen and accepted by the market.
Even if the project financing is completed, the legal affairs are in place, and the product is launched, if there is no market acceptance, the results will still remain partial. Traditional IPOs have underwriters and roadshows to solve this problem, Web3 needs an equivalent. WCN's distribution and liquidity layer plays this role - pushing results from within the system to the external market.
hierarchical positionL4 — Send the execution results of L3 to the external market
Core functionsExchange docking, market making coordination, media distribution, and community diffusion
TradFi BenchmarkingIPO underwriting + road show + market maker mechanism
Current pain points in entering the Web3 market
opaqueThe exchange’s currency listing standards are not public, and project parties rely on intermediaries and relationships. The previous Tier-1 exchange may require a "cooperation fee" of $500K-$2M + market making margin, but the process and standards are not transparent.
Market making fragmentationThe market maker market is highly fragmented and quotation standards are not uniform. For the same market making plan, the quotes from different market makers may differ by 3-5 times. The project party lacks the ability to evaluate the effect of market making.
Media effects cannot be attributedKOL promotion, media releases, community activities – money is spent but you don’t know which channel actually brings users and transaction volume. Attribution is nearly impossible.
Disconnect from distribution and financingFinancing and market entry are two independent paths. Many projects only start thinking about listing on exchanges and making markets after they have raised money, wasting the 3-6 month window period.
How WCN's distribution layer works
Need identification
When the implementation of L3 advances to a certain stage (such as financing is about to be completed and the product is about to be launched), the system automatically triggers a distribution needs assessment.
channel matching
Match appropriate exchanges, market makers, media and KOL nodes from the network based on project type, target market and budget.
Collaborative execution
Exchange docking, market making negotiations, media scheduling, and community activities are coordinated and promoted within the same time window, rather than waiting in series.
attribution tracking
Growth Agent tracks the performance of each channel—traffic sources, sign-up conversions, volume changes. Distribution effects become input to L5 attribution.
Participants at this level
Exchange/LaunchpadResponsible for the project’s market entry, token listing and initial liquidity. Tier-1 (Binance/OKX/Bybit) and Tier-2 exchanges cover users at different stages and in different regions.
Market Maker/Liquidity ProviderResponsible for the market depth, price stability and trading experience after the Token is launched. Good market making is the basis for the long-term survival of the project - Tokens without liquidity cannot attract users and investors.
Media/KOL/CommunityResponsible for narrative construction, brand communication and user diffusion. Web3's media ecosystem is highly decentralized - Crypto Twitter, YouTube, Telegram community, and Podcasts are all important channels.
Events and organizersOffline conferences (Token2049, Devcon, ETHDenver) and online AMA/Space are the core scenarios for Web3 project exposure and relationship building. Regional nodes play a key role in this layer.
TradFi Analogy: This layer is equivalent to Underwriter Roadshow + Market Maker Designation + Analyst Coverage in the IPO process. In traditional markets, these are standardized and have regulatory frameworks. Web3 has not yet established an equivalent systematic mechanism.
The distribution and liquidity layer is the exit of WCN from the internal closed loop to the external ecology - without it, no matter how good the projects and financing results are, they will only exist within the system. L4 transforms WCN from a "network that does things" into a "network that connects markets."