The evolution of DeFi technology presents a paradox where launching new protocols is easier than ever, yet securing sustainable liquidity remains a significant challenge. Many projects compete for a limited pool of capital, leading to liquidity fragmentation across protocols, chains, and token pairs. Without adequate liquidity, new decentralized exchanges (DEXs) and lending platforms struggle with user adoption and overall viability. Existing liquidity arrangements are often opaque, with established players controlling capital flow and information asymmetry creating barriers for newcomers. This situation results in inconsistent risk assessments and a disproportionate focus on familiar designs rather than innovative solutions. To address this, a neutral liquidity layer is needed to establish visibility into liquidity costs, risk-adjusted benchmarks, and sustainable incentive structures. Such innovation is vital for the DeFi ecosystem’s growth, allowing it to thrive by prioritizing genuine innovation over aggressive liquidity incentives that ultimately dilute token value and sustainability.

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