@agendas
Liquidity is key to ensuring a smooth user experience, especially when trading or interacting with the platform. Start by examining the liquidity pools available for the project’s token—are there enough active market makers to avoid slippage, particularly during periods of high volatility? Projects that integrate with popular decentralized exchanges (DEXs) or provide liquidity incentives can help boost liquidity. Also, assess whether the project has a strategy for managing liquidity during times of market stress, such as implementing dynamic liquidity models or reserve funds. High liquidity not only improves trading conditions but also enhances the user experience by making it easier for users to enter and exit positions without significant price impacts.