Everyone assumes the reason your favourite asset has no market is that nobody wants it. Usually it's the opposite.
An order book only works if someone parks inventory in it and sits there waiting for you to show up, and that costs money whether anyone trades or not.
Multiply that by every asset people actually want and it stops making sense fast. So rather than paying someone to sit in a market on the off chance, an RFQ just asks the question directly. Who wants this, right now, and at what price.
Chandler explains it a lot better than I do. 👇
Order books do price discovery well.
They need resting liquidity in every market to do it, and inventory that sits there earns nothing.
An RFQ asks the other question: Who wants this asset, and at what price, right now.
@chandlerdkk on the thesis behind Silhouette's RFQ
Size finds size 🖤