Many DeFi protocols rely on a one-size-fits-all liquidity approach, treating it as a universal solution. Looks good in theory. But reality tells a different story.
High-volatility meme tokens operate in completely different market conditions than stablecoins or long-tail assets. Their capital requirements are different. Price discovery mechanics matter differently. Risk profiles aren't comparable.
Yet most liquidity models force the same mechanism across all asset types. That's where the friction emerges. The infrastructure that works for stable assets often struggles with volatile ones. And small-cap projects get squeezed into structures designed for major tokens.
Effective liquidity isn't about building one perfect model—it's about matching the structure to what the asset actually needs.
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Many DeFi protocols rely on a one-size-fits-all liquidity approach, treating it as a universal solution. Looks good in theory. But reality tells a different story.
High-volatility meme tokens operate in completely different market conditions than stablecoins or long-tail assets. Their capital requirements are different. Price discovery mechanics matter differently. Risk profiles aren't comparable.
Yet most liquidity models force the same mechanism across all asset types. That's where the friction emerges. The infrastructure that works for stable assets often struggles with volatile ones. And small-cap projects get squeezed into structures designed for major tokens.
Effective liquidity isn't about building one perfect model—it's about matching the structure to what the asset actually needs.