2026-01-04 22:25:43

Liquidity Infrastructure vs Incentive Subsidies, this is the critical crossroads for DeFi protocols.

Most protocols rely on incentives to attract liquidity providers (LPs), but some projects take a different approach—treating liquidity as infrastructure to be designed and maintained, rather than just stacking subsidies.

This difference is reflected in three dimensions: how LP capital flows and is allocated, through what mechanisms yields are generated, and how risks are transparently communicated to users.

Different architectural ideas lead to vastly different long-term outcomes.

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Token_Sherpa

· 15h ago

yeah this is the real talk nobody wants to hear... most protocols are just printing rewards hoping nobody realizes the ponzinomics underneath. infrastructure-first design actually matters but people chase yields like it's 2021 all over again

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LightningSentry

· 15h ago

Subsidy stacking should have died long ago. I've seen too many projects scam liquidity with candies and then run away. To truly play DeFi, you need to see who treats liquidity as their core asset and designs with care. That's the real way to make money in the long run.

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