In the world of cryptocurrencies there is a concept called "liquidity", this refers to the ability of an asset to be sold or bought, it is like "how much reliability in the future have this asset", if it has a good reliability you can buy and sell constantly without expecting any sudden change, if not, this liquidity drops. Liquidity is generated by the buyers and sellers of the asset itself, these sellers and buyers have a great weight on the price that an asset can acquire, but what happens when there are no sellers or no buyers of an asset?

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In 2017 bitcoin had an abysmal price change, in that same year bitcoin had a cost of less than 1000 dollars, but in December of the same year its prices was already above 20000 dollars, this was the product of a government regulariacion as well as a general adoption in addition to a supply and many other factors, bitcoin already had a good liquidity but this change provided a large increase in this same, Bitcoin's liquidity was what gave it the stability to be able to withstand the high pressure rise to which it was subjected during the period of 2017 and 2020, which was the great boom of cryptocurrencies, any other cryptocurrency that did not have enough liquidity to withstand that pressure rise, would have fallen immediately and with it all its value.

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Over the years cryptocurrencies were varying their prices very sharply, among the factors by which an asset varies and changes so much in their prices is liquidity and can answer the previous question, if an asset has no supply or demand, there are no buyers or sellers, the asset loses liquidity and therefore, This is a problem with which many cryptocurrencies today deal with, new and emerging cryptocurrencies that due to problems in their liquidity suddenly fall and become practically nonexistent, among these cryptocurrencies there are some that manage to stay despite the liquidity and reliability problems with which they deal.

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Solana is a cryptocurrency that after the great fall it had due to liquidity problems today remains quite stable and with too much potential, boosting again its DeFi protocol is born a solution for Solana whose mission is to boost and maintain the liquidity of Solana in the long term to turn Solana into the ultimate trading center for the main cryptocurrency users with the implementation of 4 methods:

In this essay we will talk about Meteora, the solution born from the Solana DeFi protocol as a solution to a liquidity problem that Solana has, we will talk about its background, we will talk in depth about Dynamic Vaulting including its definition, operation, pros and cons and finally the future of meteora and the conclusions we have about the project.