Liquidity on Avalanche -- thesis

Avalanche currently has a systemic weakness – liquidity: Pancake has about $1.6B in liquidity: Sushi > $5B, etc. Avalanche, with a much more advance platform, has ~$300MM after a few months. I believe the issue is that Avalanche has in effect outsourced it’s liquidity provisioning to ethereum miners…and they are extremely expensive. If Avalanche needs a couple billion dollars of liquidity to function effectively, the current strategy would represent be a massive transfer of wealth to miners.

At a choice between, miners and cex, I am not sure Avalanche has made the right choice. Unless some new inexpensive “bridging” is coming along quickly, Avalanche needs a short-medium term relationship (partial acquisition/partnership, etc.) with a cex (probably a smaller one) to more efficiently funnel assets (not just Avax) to the chain.


I’m not sure if it’s right to say that Pancake has 1.6B liquidity… The staked assets value is strongly influenced by Binance itself… I’m not really sure if that number is real and if Binance has liquidity enough to back all this assets (well, you may say the same about Ethereum, but at least you have more exchanges to get liquidity).
At ther end, “good money” replaces “bad money”… if AVAX prove himself better than Eth or BNB, AVAX will increase his value and liquidity will flow like mana.

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