Mantle is advancing a so-called "Liquidity Chain" program.

Many people cannot understand this word.

In plain terms, they want to use assets like mETH and FBTC, which come with yields, along with modular infrastructure, to reconnect the currently fragmented DeFi.
From the data, there is indeed some improvement. The TVL increased by 32% in the fourth quarter, reaching 320 million dollars. The market value of stablecoins has also reached 700 million dollars.
But the reality is quite harsh. The competition for L2 is too fierce now. Plus, the MNT token has dropped by half in the last 30 days. Whether this Liquidity flywheel can get going remains to be seen.
To be honest, when Mantle first came out in 2023, the market response was quite lukewarm. After all, Arbitrum and Optimism had already established their positions.
Another new chain based on OP Stack feels like just adding to the excitement.
But the Mantle team clearly does not want to just create an ordinary scaling solution.
You can tell from their latest article that the positioning has changed.
They no longer emphasize how impressive the technology is or how big the numbers are, but instead focus on the concept of "Liquidity Chain."
The core is to solve the problem of low capital efficiency.
Currently, there are billions of dollars in funds that are either idle or trapped on various islands and cannot be retrieved.

Mantle has indeed pinpointed the pain points of DeFi.
The current liquidity fragmentation is indeed very serious.
The friction of cross-chain capital flow is too great.
Bridging assets between different chains not only incurs high costs but also takes a long time.
There is also a lack of effective combinations between the protocols.
Funds are difficult to flow smoothly between different applications.
Users want to achieve optimal returns, they still need to manually move funds back and forth between multiple platforms.
The root of these problems lies in the lack of unified consideration during the design of the entire DeFi infrastructure.

Every protocol is optimizing its own efficiency, but no one is managing the efficiency of the entire ecosystem. Therefore, what the Mantle team is doing is a very meaningful endeavor.
@0xMantleCN
@Mantle_Official
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