Liquidity-network bridge

liquidity bridge

A bridge design where pre-funded LPs fulfil cross-chain transfers — fast, but with LP-side imbalance risk.

Examples: Hop, Across, Stargate. User pays a fee to LPs, who later rebalance via the slow canonical bridge. Faster than waiting for L1 settlement but the LPs absorb routing-imbalance risk and depend on rebalancing economics staying favourable.

Related terms

BridgeA protocol that lets assets move between chains, usually by lock-and-mint, burn-and-mint, or liquidity-network designs.
Canonical bridgeAn issuer- or chain-operated bridge that produces the version of an asset the issuer treats as its native off-chain representation.