Liquidity risk
The risk you cannot exit a position at a fair price within a desired timeframe.
For a stablecoin holder: redemption-window risk + secondary-market depth risk. For a yield seeker: pool exit liquidity, withdrawal queue length, time-locked LP positions. StableLens computes per-pool Exit liquidity independent of TVL (total value locked) — the two diverge sharply during stress.
Related terms
- Exit liquidityHow much capital can leave a position at a defined slippage tolerance over a defined window.
- RedemptionExchanging a stablecoin back to its underlying claim (USD, ETH collateral, USDC at a PSM).
- TVL (total value locked)The total dollar value of assets deposited in a protocol — the headline scale metric in DeFi.