As cryptocurrency gets ever closer to mainstream adoption, the promise of decentralized finance for all becomes more realistic.

With a rapidly growing market, valued at $89B (according to CoinMarketCap), DeFi adoption is clearly on the rise.

But there is an important caveat that many people are unaware of, and that’s the issue of liquidity.

What Is Liquidity And How Does It Work On The Blockchain?

Investopedia defines liquidity as “The efficiency or ease with which an asset or security can be converted into ready cash without affecting its market price”

When using a centralized exchange, liquidity is defined by how many buyers and sellers there are, and how easily they are able to agree on a price.

In DeFi, most protocols rely on liquidity pools and AMMs or Automated Market Makers. Unfortunately, in today’s landscape, there are a lot of blockchains and liquidity is fragmented across them.

What Is The Solution And Why Should You Care?

That may not sound so scary, but it is!

So much so that a recent article by M6 Labs about liquidity was titled “Liquidity Fragmentation: The Silent Killer of Defi”

Let’s explore why it’s so important:

Say you have a digital asset that you want to sell quickly, such as a relatively new memecoin.

Maybe you are holding large amounts and the price has gone up exponentially, making your initial small investment worth millions of dollars – exciting right?

But not if you don’t have enough liquidity.

With low or fragmented liquidity, every time you sell, you will crash the price of your coin. Also, you may use up all the liquidity from the liquidity pool and be unable to cash out at any price.

An article by Decrypt tells the story of the trader who turned $250 worth of PEPE into $1M, just after it first mooned, but was unable to cash out for these exact reasons.

They quoted Grzegorz Drozdz, an analyst at Conotoxia Ltd who said “With 5.9 trillion PEPE tokens in their portfolio, it would take 46,200 years to liquidate these assets, assuming non-declining demand.”

So what is the solution? The answer is interoperability between blockchains.

The Promise Of Cross-Chain Interoperability

While any one blockchain or DEX may not have much liquidity for a particular token, the chances are that if all the chains were grouped together, liquidity would not be an issue.

With effective cross-chain interoperability, cryptos are no longer stuck in isolated liquidity pools on various blockchains but instead can be accessed from a single DEX.

If DeFi is going to keep growing, cross chain interoperability is essential. That’s why projects like Chainlink are proving so successful, as that is one of the things they are trying to solve.

The puzzle is bigger than just one piece.

Take Solana for example, after the Jupiter DEX was released. There was a ton more liquidity available, due to its cross-protocol liquidity swap, helping it to function as a liquidity aggregator.

This then caused a boom in the Solana economy, as people can use Jupiter to find liquidity but also to deploy tokens and create liquidity pools for their tokens on different DEXes and chains.

The aggregator function then kicks in, as Jupiter then checks the prices of assets from all the different pools and chains, allowing users to get the best price.

It’s no surprise then, that Solana’s memecoin economy went parabolic in 2024.

This is where Elluminex enters the scene.

Built on the TON blockchain, Elluminex is a DeFi hub designed to remove liquidity barriers by embracing cross-chain interoperability.

Think of it as a liquidity magnet for TON, drawing assets from other chains to create a deeper, more versatile market.

Elluminex – The Solution To DeFi’s Growth On The TON Blockchain

Thanks to Elluminex’s upcoming cross-chain bridge, whether people are trading, staking, or exploring other DeFi products, Elluminex will aim to offer a level of liquidity that other platforms can’t match.

What’s special about Elluminex? It doesn’t just pull in assets from one or two chains; it’s built to integrate with multiple blockchains, giving users on TON access to a broad array of assets with deep liquidity.

This makes trading easier and better, with less slippage, higher profitability and the ability to cash out when people want.

Elluminex has the power to do for TON, what Jupiter did for Solana.

Elluminex is going to set the standard on TON, showing what’s possible when liquidity can finally flow freely. For anyone serious about DeFi, cross-chain solutions are the path forward.

This is the next big step for DeFi, allowing it to evolve from a fragmented market into a unified financial system.

For more information about Elluminex visit the links below:

Website: https://elluminex.com

Twitter/X: https://x.com/elluminex

Telegram: https://t.me/Elluminex

The subject matter and the content of this article are solely the views of the author. FinanceFeeds does not bear any legal responsibility for the content of this article and they do not reflect the viewpoint of FinanceFeeds or its editorial staff.

The information on this page does not constitute advice or a recommendation on any course of action and does not take into account your personal circumstances, financial situation, or individual needs. We strongly recommend you seek independent professional advice or conduct your own independent research before acting upon any information contained herein.

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The Promise Of Cross-Chain Interoperability

While any one blockchain or DEX may not have much liquidity for a particular token, the chances are that if all the chains were grouped together, liquidity would not be an issue.

With effective cross-chain interoperability, cryptos are no longer stuck in isolated liquidity pools on various blockchains but instead can be accessed from a single DEX.

If DeFi is going to keep growing, cross chain interoperability is essential. That’s why projects like Chainlink are proving so successful, as that is one of the things they are trying to solve.

The puzzle is bigger than just one piece.

Take Solana for example, after the Jupiter DEX was released. There was a ton more liquidity available, due to its cross-protocol liquidity swap, helping it to function as a liquidity aggregator.

This then caused a boom in the Solana economy, as people can use Jupiter to find liquidity but also to deploy tokens and create liquidity pools for their tokens on different DEXes and chains.

The aggregator function then kicks in, as Jupiter then checks the prices of assets from all the different pools and chains, allowing users to get the best price.

It’s no surprise then, that Solana’s memecoin economy went parabolic in 2024.

This is where Elluminex enters the scene.

Built on the TON blockchain, Elluminex is a DeFi hub designed to remove liquidity barriers by embracing cross-chain interoperability.

Think of it as a liquidity magnet for TON, drawing assets from other chains to create a deeper, more versatile market.

Elluminex – The Solution To DeFi’s Growth On The TON Blockchain

Thanks to Elluminex’s upcoming cross-chain bridge, whether people are trading, staking, or exploring other DeFi products, Elluminex will aim to offer a level of liquidity that other platforms can’t match.

What’s special about Elluminex? It doesn’t just pull in assets from one or two chains; it’s built to integrate with multiple blockchains, giving users on TON access to a broad array of assets with deep liquidity.

This makes trading easier and better, with less slippage, higher profitability and the ability to cash out when people want.

Elluminex has the power to do for TON, what Jupiter did for Solana.

Elluminex is going to set the standard on TON, showing what’s possible when liquidity can finally flow freely. For anyone serious about DeFi, cross-chain solutions are the path forward.

This is the next big step for DeFi, allowing it to evolve from a fragmented market into a unified financial system.

For more information about Elluminex visit the links below:

Website: https://elluminex.com

Twitter/X: https://x.com/elluminex

Telegram: https://t.me/Elluminex

The subject matter and the content of this article are solely the views of the author. FinanceFeeds does not bear any legal responsibility for the content of this article and they do not reflect the viewpoint of FinanceFeeds or its editorial staff.

The information on this page does not constitute advice or a recommendation on any course of action and does not take into account your personal circumstances, financial situation, or individual needs. We strongly recommend you seek independent professional advice or conduct your own independent research before acting upon any information contained herein.