Dossier
Coordination problem
Coverage of Coordination problem in the Nexus archive.
- Why do LPs keep getting rekt by the protocols they support?
The article discusses how liquidity providers (LPs) in blockchain protocols often face dilution due to inflationary tokenomics, where early participants benefit while long-term LPs are harmed. It questions whether protocols can align incentives to sustain liquidity without relying on temporary solutions like token locks.