The Dilemma of Fragmented Liquidity and Its Solutions: The Rise of Full-Chain Liquidity Infrastructure

In today's flourishing multi-chain ecosystem, the extreme fragmentation of on-chain 流动性 has become a bottleneck restricting further development of the industry. In the face of this challenge, how to build a more efficient and fair liquidity infrastructure, allowing ordinary users to better participate in the emerging ecological dividends, has become a pressing issue that needs to be addressed.

With the advancement of the modular wave, from the multi-chain concept of Cosmos and Polkadot, to the prosperity of Rollups in the Ethereum L2 era, and then to the rise of application chains, more and more protocols and applications are beginning to build dedicated chains for specific needs. According to statistics, there are over a hundred L2s on Ethereum alone. This diversity, while bringing more possibilities to the on-chain ecosystem, has also led to severe fragmentation of Liquidity.

Liquidity is not only dispersed on Ethereum and L2, but also severely isolated within the exclusive ecosystems of various emerging public chains/application chains. This phenomenon of fragmentation not only exacerbates the complexity of user operations and experiences but also greatly restricts the further development of DeFi and on-chain applications. For Ethereum and L2, liquidity cannot flow freely, resulting in reduced capital efficiency; for emerging public chains, this means high migration costs and entry barriers, making it difficult to break the liquidity island effect from 0 to 1, thus hindering ecological expansion.

In this context, both users and developers are eagerly hoping for funds to flow efficiently across any network's DEX, lending, and other on-chain protocols, breaking the fragmentation of network barriers and user experience. Especially in emerging public chain ecosystems like Plume and Berachain, users need to be able to easily migrate assets from Ethereum or other chains to participate in their DeFi protocols, liquidity mining, or other yield opportunities.

For users, liquidity is always key. Therefore, if Ethereum and the multi-chain ecosystem are to continue to scale and prosper, there is an urgent need to efficiently integrate the liquidity resources that are dispersed across multiple chains and platforms. This requires the establishment of a unified technical framework and standards, thereby bringing broader applicability, liquidity, and scalability to the multi-chain ecosystem.

It is against this backdrop that the full-chain liquidity infrastructure has emerged. As an innovative platform for issuing full-chain liquidity treasury products, it aims to assist emerging public chains and application chains in efficiently integrating cross-chain liquidity resources by providing customized liquidity fundraising solutions, breaking down liquidity islands, and promoting the efficient flow of capital.

The core value of this type of infrastructure lies not only in solving the liquidity isolation problem of emerging public chains and application chains but also in its unique mechanism design, which forms a "full-chain liquidity flywheel" that integrates multiple asset returns and liquidity re-release. Its core revolves around the LP Token, developing multiple returns and liquidity re-release mechanisms.

1. After users deposit assets, they receive LP Tokens. These tokens are not only proof of users' rights in the emerging public chain ecosystem, but also the key to unlocking multiple sources of income.

2. The assets deposited by users will directly participate in the emerging public chain ecosystem, such as Liquidity mining rewards, governance token airdrops, etc. Automated strategies help users efficiently capture these local benefits without facing complex technical operations.

3. LP Token represents the rights of users in the emerging public chain ecosystem, and also packages the earnings of the emerging ecosystem into yield-bearing assets, interfacing with more mature mainnet infrastructure, exhibiting high financial composability. Users can seamlessly access DeFi financial facilities on Ethereum through LP Token, further unlocking liquidity potential.

This mechanism allows users to reuse a single asset across multiple ecosystems, maximizing returns while significantly lowering the entry barrier for emerging ecosystems. With multiple returns compounding, users' investment returns can be maximized, and the acceptance and recognition of emerging ecosystems can quickly gain momentum, creating a positive flywheel effect.

With the elevation of the liquidity infrastructure across the entire chain, it can better and more effectively connect emerging ecosystems in the cold start phase with mature ecosystems in different yield scenarios. On one hand, it helps new public chains raise cold start funds and obtain the "from 0 to 1" liquidity support needed for early development; on the other hand, it brings excess returns back to the mature market, achieving a complete cycle of resources.

This dynamic adaptation mechanism enhances the compound ability of asset returns and further strengthens the market adaptability and competitiveness of the entire chain's Liquidity infrastructure. In the competitive landscape of the multi-chain era, it is highly likely to become a key lever for building Liquidity niche assets and a prosperous on-chain ecosystem.

By introducing a new yield structure with inherent full-chain liquidity attributes, the full-chain liquidity infrastructure can not only stimulate the sluggish on-chain ecosystem, but also design products with higher capital efficiency and better yields, as well as composable DeFi scenarios. This not only meets users' pursuit of diversified yields but also provides efficient liquidity solutions for emerging public chains and mature ecosystems.

In the future, with the accelerated expansion of multi-chain ecosystems, the comprehensive liquidity infrastructure is expected to become a core hub connecting emerging public chains with mature markets, providing users and protocol parties with more efficient and fair liquidity solutions. From the liquidity dilemma of "entropy increase" to the ecological prosperity driven by "flywheel effect", redefining the liquidity infrastructure of Web3 is both an inevitable path to further improve the topic of comprehensive liquidity and the optimal solution to promote the maturity of the multi-chain ecosystem.