The Cables Liquidity Flywheel

The Cables ecosystem operates on a self-reinforcing liquidity cycle that connects yield generation with active trading. This flywheel begins with our yield-bearing LSTs, which serve as the foundation for liquidity attraction and market depth.

The flywheel operates through three key mechanisms:

• Yield Generation: LSTs like cEUR, cJPY, and cXAU create yields through FX hedging and Ethena's infrastructure

• Market Depth Enhancement: LST liquidity feeds into perpetual futures markets, building deeper order books and improving price discovery

• Trading Amplification: Deeper markets enable institutional trading and advanced strategies, driving activity that attracts more LST deposits

The perpetual futures DEX uses this concentrated liquidity for cross-margin trading and multi-asset collateral. As trading volume grows, it creates additional yield opportunities for LST holders, completing the flywheel. Each participant's activity strengthens the ecosystem, driving market growth and platform development.