# Vision: A Unified Liquidity Market For Every Digital Asset

## Limitless Leverage Facility: A *Unified* Liquidity Hub for *permissionless* spot/lending/derivatives

DeFi currently faces the challenge of liquidity fragmentation across different financial activities such as trading, lending, and various derivatives like options and perpetual futures. A consolidated liquidity hub that seamlessly integrates lending, spot trading, and derivative trading would significantly enhance market efficiency.

<figure><img src="https://20107516-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FhzaQpygyckQc1GpfmDWt%2Fuploads%2FUFSk3ftf0psJVgt5pLpa%2FScreen%20Shot%202023-10-08%20at%2011.09.02%20PM.png?alt=media&#x26;token=e33063b6-50bf-48b0-ae42-21183cac4719" alt=""><figcaption></figcaption></figure>

Presently, DeFi operates in silos: a user looking to swap assets typically trades against an AMM protocol, a borrower seeks leverage from a dedicated lending pool protocol, and traders interested in options or perpetual futures turn to specialized derivatives protocols.&#x20;

This fragmented approach is a prime example of market inefficiency and the increased cost of financial activities from fragmentation is borne by all participants.&#x20;

### **Fragmented Liquidity is expensive** <a href="#fragmented-liquidity-is-expensive" id="fragmented-liquidity-is-expensive"></a>

This form of **fragmentation makes it more expensive to access liquidity for both traders and borrowers**. With liquidity being more scarce in a single liquidity venue, a trader would pay more in slippage, and a borrower would pay more interest(or simply might not be able to borrow at all). This is particularly true for long-tail assets, where liquidity is generally hard to source.

What Limitless presents is a system that [**recycles existing spot liquidity**](https://limitless.gitbook.io/limitless/intro/participants/liquidity-providers/rehypothecation-of-liquidity) to ***unify tradable, lendable, and derivatives liquidity*** which ultimately lowers the cost of a whole suite of financial products. \
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Limitless is a new dependency-free and trustless financial primitive where people can

1. trade spot &#x20;
2. borrow/lend&#x20;
3. trade with leverage
4. trade options&#x20;
5. trade insurance&#x20;

**with any tokens**, all within the same liquidity hub.&#x20;