Pathfinder Liquidity Layer
Overview:
The Liquidity Layer is Pathfinder’s real-time cash desk.
It ensures that any user can move money instantly — whether that’s paying a bill, swapping assets, or cashing out — without waiting for other investments to unwind.
Think of it like a payment network combined with a high-yield reserve account:
It processes instant withdrawals and payments (like Visa/Mastercard do for purchases)
But instead of holding all the cash idle, it keeps part of it earning yield until it’s needed
Key Roles:
Tier A (Instant Liquidity) — same-block access for withdrawals and payments.
Tier B (Short-Notice Reserves) — yield-earning assets that can be unwound in hours to a day.
Tier C (Long-Duration Reserves) — high-return positions with longer unwind times.
Flow Control — automatically rebalances between tiers to match usage patterns.
Why It’s Like a Payment Network:
Transactions are instant for the user, even though back-end settlement and fund rebalancing happen later.
Tiers act like settlement buffers, just as card networks keep reserve accounts to handle surges in payments.
Unique to DeFi:
Tiers B & C aren’t idle reserves — they’re actively deployed in external protocols.
Reserve ratios are dynamic, adjusting in real time.
Fully transparent and auditable on-chain.
Example Flow:
User requests $5M withdrawal from Tier A.
Tier B backfills Tier A within seconds.
Yield Stack begins unwinding a $5M position from Tier C to restore Tier B balance.
Last updated