@lesterspender
Liquidity diversity strengthens market resilience and reduces reliance on a single provider or pool. Assess whether liquidity comes from decentralized exchanges, centralized exchanges, cross-chain bridges, and institutional partners. Projects that incentivize multiple liquidity providers through yield farming or liquidity mining create deeper, more stable pools. Overconcentration in one DEX or market maker raises vulnerability to sudden withdrawals or manipulation. Evaluating token pairings, stablecoin support, and multi-chain availability helps determine whether liquidity is sustainable. A broad base of liquidity sources ensures healthier price stability and improves investor confidence.
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