Vision: A Unified Liquidity Market For Every Digital Asset
Last updated
Last updated
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.
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.
This fragmented approach is a prime example of market inefficiency and the increased cost of financial activities from fragmentation is borne by all participants.
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 to unify tradable, lendable, and derivatives liquidity which ultimately lowers the cost of a whole suite of financial products. Limitless is a new dependency-free and trustless financial primitive where people can
trade spot
borrow/lend
trade with leverage
trade options
trade insurance
with any tokens, all within the same liquidity hub.
