The Problem

Traditional DeFi AMMs suffer from four core issues:

  1. Liquidity is mercenary – LPs chase short-term rewards, leading to poor depth and constant volatility.

  2. Emissions are wasteful – Protocols pay for TVL without guarantees, and most rewards are dumped immediately.

  3. Governance is weak – Token holders have little incentive to participate meaningfully in protocol direction.

  4. Protocol incentives are misaligned – Builders don’t have tools to retain value or direct liquidity efficiently.

This results in ecosystems with unstable token prices, low confidence from LPs, and fragmented community governance.

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