Definition ∞ Liquidity mobilization describes the process of aggregating and making available financial assets to facilitate trading or lending within a market. In decentralized finance, this often involves users contributing their digital assets to liquidity pools on automated market makers. This action increases the market depth and enables more efficient exchange of tokens.
Context ∞ The success of many decentralized finance protocols relies heavily on effective liquidity mobilization, a topic frequently covered in crypto news. Discussions often focus on incentive mechanisms, such as yield farming, designed to attract and retain liquidity providers. The ability to mobilize sufficient liquidity is critical for the operational efficiency and price stability of digital assets.
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