> For the complete documentation index, see [llms.txt](https://docs.cables.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.cables.finance/the-cables-liquidity-flywheel.md). # The Cables Liquidity Flywheel The Cables ecosystem runs on a self-reinforcing liquidity cycle where yield fuels usage, and usage drives liquidity. At the center are yield-bearing real-world assets like cEUR, cJPY, and cXAU, which create incentives for users to hold and deploy capital across the network. The flywheel works through three connected mechanics: * Yield Layer: Assets like cEUR, cJPY, and cXAU generate passive yield through on chain yield solutions like Ethena and Pendle. This attracts deposits and anchors capital onchain. * Utility Layer: These assets are usable across the Cables marketplace - for holding, swapping, or settling trades - giving them real onchain utility and reinforcing demand. * Recirculation Layer: As users transact and earn with these assets, more liquidity flows back into the ecosystem. Participants can restake yield, move assets across apps, or deploy capital back into the marketplace—completing the loop. Each action strengthens the system. More deposits create more yield. More yield drives more usage. More usage deepens liquidity and opens the door for further applications. Cables grand vision is to go beyond minting tokenized assets, it’s building a system where real-world value compounds onchain. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.cables.finance/the-cables-liquidity-flywheel.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.