Liquidity Drain

Zeebu's defense against liquidity drains is built into its economic structure. The protocol's On-demand Liquidity Provider (OLP) incentives create a powerful motivation for maintaining robust liquidity pools. As transaction volume increases, so does the reward for providing liquidity, creating a self-reinforcing cycle of stability.

The protocol's fee structure acts as a secondary safeguard. The 0.4% share levied by Zeebu becomes increasingly attractive as demand for settlement liquidity rises. This dynamic pricing mechanism ensures that market forces naturally counteract potential liquidity crunches. By aligning the interests of liquidity providers with overall network health, Zeebu creates an environment where draining liquidity becomes economically unfeasible.