The Liquidity Dilemma and Solutions in a Multi-Chain Ecosystem

In the current multi-chain landscape, the fragmentation of liquidity has become a prominent issue. With the advancement of the modular wave, from the multi-chain concepts of Cosmos and Polkadot to the prosperity of Rollups in the Ethereum L2 era, and the development of various application chains, more and more protocols and applications are beginning to build dedicated chains for specific needs. This diversity, while bringing more possibilities to the on-chain ecosystem, has also led to extreme dispersion of liquidity.

Fragmentation of liquidity not only exacerbates the complexity of user operations but also limits the further development of DeFi and on-chain applications. For Ethereum and L2, liquidity cannot flow freely, reducing capital efficiency; for emerging public chains, this means higher migration costs and entry barriers, making it difficult to break the liquidity island effect from 0 to 1, hindering ecosystem expansion.

In this context, both users and developers are eager for funds to flow efficiently across the chain protocols of any network, breaking down network barriers. Especially in the emerging public chain ecosystem, users need to be able to easily migrate assets from other chains to participate in various yield opportunities. This requires the establishment of a unified technical framework and standards to integrate liquidity resources dispersed across multiple chains and platforms.

In response to this demand, some innovative full-chain liquidity infrastructure has begun to emerge. These platforms aim to assist emerging public chains and application chains in efficiently integrating cross-chain liquidity resources by providing customized liquidity fundraising solutions, breaking down liquidity silos, and promoting efficient capital circulation. They not only bring much-needed liquidity support to the ecosystems of emerging public chains but also lay the foundation for building full-chain liquidity infrastructure.

The core value of this whole-chain liquidity solution lies not only in solving the liquidity isolation problem of emerging public chains and application chains but also in forming a "whole-chain liquidity flywheel" that integrates multiple asset yields and liquidity release through unique mechanism design. Its core revolves around the LP Token, developing multiple yield and liquidity re-release mechanisms:

1. The LP Token obtained after users deposit assets is not only a certificate of rights in the emerging public chain ecosystem but also the key to unlocking multiple收益.

2. Users can directly participate in liquidity mining, governance token airdrop, and other profit opportunities in the emerging public chain ecosystem.

3. LP Tokens can also be integrated with DeFi facilities on Ethereum to further unlock liquidity potential, such as providing liquidity on DEXs, using them for lending collateral, selling rights to revenue, etc.

This mechanism allows a user's asset to be reused across multiple ecosystems, maximizing returns while also lowering the participation threshold for emerging ecosystems. Under the accumulation of multiple returns, a positive flywheel effect is formed: more users participate → more Liquidity is injected → emerging ecosystems develop faster → the value of encapsulated assets increases → attracting more users to participate.

With the accelerated expansion of the multi-chain ecosystem, these full-chain liquidity infrastructures are expected to become the core hub connecting emerging public chains with mature markets, providing users and protocol parties with more efficient and fair liquidity solutions. They can not only stimulate the sluggish on-chain ecosystem but also design product forms and composable DeFi scenarios with higher capital efficiency and better returns, meeting users' pursuit of diversified yields, while also providing efficient liquidity solutions for emerging public chains and mature ecosystems.

From the "entropy increase" liquidity dilemma to the "flywheel drive" ecological prosperity, redefining the liquidity infrastructure of Web3 is not only an inevitable path to improve the overall chain liquidity issue, but also the optimal solution to promote the maturity of the multi-chain ecosystem. Whether we can reach the critical point of transformation in the future still requires continuous observation.