The lack of liquidity can have a significant impact on the DeFi industry, affecting the ease of buying and selling digital assets at stable prices. High liquidity allows for large-volume trading with minimal impact on asset prices, while low liquidity creates risks and lower investor confidence. To attract institutional investors, investment banks, and venture capital firms, the DeFi market needs to bring in more liquidity. The introduction of protocols like Uniswap V3 and chain-specific DEX aggregators has improved capital efficiency and reduced friction in liquidity provision. Next-generation liquidity governance models, such as Thena's V3,3 model, aim to support the dynamic allocation of capital into liquidity pools based on token holder votes. Thena V3,3 introduces decentralized emissions, bribery mechanisms, and value creating strategies to incentivize liquidity and provide protocols with more control over liquidity management. These innovations strengthen the DeFi industry's ability to support institutional investments and scale to the next level.



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