How does dYdX provide liquidity?

Could you please elaborate on how dYdX manages to provide liquidity in the cryptocurrency space? I'm curious about the mechanisms it employs to ensure smooth transactions and maintain a healthy order book. Does it rely on external sources for liquidity or does it generate it internally? Additionally, how does dYdX ensure that its liquidity pool remains robust and sufficient to handle the trading volume? Would you mind explaining the role of its market makers and how they contribute to maintaining liquidity? I'm interested in understanding the intricacies of its liquidity provision process.