# WTF is Liquid??

By [Liquid](https://paragraph.com/@liquid-2) · 2024-11-20

---

Why does Liquid exist today?
============================

The rapid growth of DeFi has led to a proliferation of liquidity and lending protocols and networks, resulting in a fragmented and confused landscape for users with terrible user experiences. Today, only degens and pro crypto users can provide liquidity for tokens or borrow assets from a lending protocol and benefit from yield, trade fees and other incentives.

With new protocols being launched, it even makes it harder for pro crypto users to manage liquidity and yield positions across different protocols on Base—— Anyone, anywhere in the world with a mobile phone and access to internet should be able to provide liquidity or invest in a DeFi protocol without caring about the network or what assets they have.

![](https://storage.googleapis.com/papyrus_images/efc44745683ae4388b5a1780f88a7f63cba5fe3497dd3b49a56f91209384d7a6.jpg)

The Liquid case
===============

Liquid is making it easier for anyone to access yields on Liquidity and Lending Protocols

*   What if you didn’t have to manually swap into both asset pairs to provide Liquidity on a pool?Imagine a user with only **USDC**?
    
*   What if you didn’t have to go through 5 steps, multiple platforms, and transaction signing to deposit Liquidity into a pool?
    
*   What if you could manage all your Liquidity positions across multiple protocols in one place?
    
*   What if you could provide Liquidity on a **USDC/cbBTC** pool with Apple Pay?
    
*   What if you could provide Liquidity on a **USDC/Aero** pool with bank transfers or debit cards
    

Liquid Components
=================

At the heart of Liquid's philosophy is an unwavering commitment to user experience and great design. Recognizing that the complexity of DeFi often serves as a barrier to entry for many potential users, Liquid prioritizes intuitive design, user-friendly interfaces and user education.

Liquid App
----------

![](https://storage.googleapis.com/papyrus_images/00584f1ac415a2a7693bb4cd3411461d96354d69630886c537d42cdda1a7ffa5.jpg)

The Liquid app is the primary entry point for users to interact with Liquid's protocol on Base. Key features include:

1.  **Smart Accounts**: Cross-chain compatible accounts with enhanced security features like multi-sig and social recovery options.
    
2.  **Streamlined Liquidity Management**:
    
    *   Automated liquidity provisioning using AI agents
        
    *   Multi-position strategies for experienced users
        
3.  **Gasless Transactions**: Reduces barriers to entry by allowing users to pay gas fees in the token they're transacting.
    
4.  **Interactive Education**: Step-by-step guides, tooltips, and video tutorials to help users understand DeFi concepts.
    
5.  **Liquidity Migration**: Seamless migration of liquidity positions from Ethereum to Base.
    
6.  **User-Friendly Interface**: Designed for both beginners and experienced users, with a focus on intuitive navigation and ease of use.
    

Liquid Protocol
---------------

At the heart of the Liquid’s protocol are connectors.

![](https://storage.googleapis.com/papyrus_images/5ee2d74235e6b5ea20c781e0d2864a875cbc4204b9081d23019ee1fc412d20a1.jpg)

### Connectors

Connectors are the bridge between Liquid and various DeFi protocols across different chains. Connectors serve as standardized contracts that allow Liquid to interact with multiple Liquidity and Yield protocols while bundling different actions into one transaction.

Key features of Connectors:

1.  **Protocol Abstraction**: Each connector implements a standard interface, allowing Liquid to interact with different protocols in a uniform manner.
    
2.  **Adaptability**: Connectors can be easily updated or added to support new protocols or changes in existing ones. Addition of new connectors will be done via the Liquid Governance.
    

The connector module turns different Liquidity and Yield protocols into one unified Layer that will be interacted with through the smart accounts.

As part of the broader onchain vision to onboard a billion users to crypto, our mission is to Democratize access to high quality opportunities to grow wealth.

Build the future of DeFi with us
--------------------------------

*   [Liquid Community](https://discord.gg/getliquid)
    
*   [Liquid Twitter](https://x.com/getliquidapp)
    
*   [Liquid Codebase](https://github.com/metastable-labs)

---

*Originally published on [Liquid](https://paragraph.com/@liquid-2/wtf-is-liquid)*