# 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*.
