> For the complete documentation index, see [llms.txt](https://limitless.gitbook.io/limitless/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://limitless.gitbook.io/limitless/intro/vision-a-unified-liquidity-market-for-every-digital-asset.md).

# 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="/files/Uld1DCvnB310naGiVeqI" 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**](/limitless/intro/participants/liquidity-providers/rehypothecation-of-liquidity.md) 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

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;