New here — trying to understand how instant swaps really work

[hosemary]

Another popular way these services perform swaps instantly is by using some other liquidity provider's reserves instead of their own, e.g. KuCoin.

Are you sure instant exchanges can use KuCoin and similar exchanges as their liquidity provider?  
KuCoin is an exchange with mandatory KYC, and I don't think they allow such activites. I think using Kucoin as liquidity provider would be like someone using someone else's account on KuCoin.

[NotATether]

Are you sure instant exchanges can use KuCoin and similar exchanges as their liquidity provider?  
KuCoin is an exchange with mandatory KYC, and I don't think they allow such activites. I think using Kucoin as liquidity provider would be like someone using someone else's account on KuCoin.

Yes, I am sure. It would be like the Changelly or Spawuz business model though.