Because protocol-managed liquidity represents a large supply share, the ecosystem has meaningful flexibility over time.
Subject to governance decisions, the protocol can:
reallocate part of the liquidity supply,
reduce it progressively as external liquidity grows,
or apply supply adjustments (including partial burns), depending on ecosystem strategy.
All such actions are intended to be governed transparently through community-approved rules.
3) Progressive transition toward community custody
As the ecosystem matures and liquidity becomes less dependent on protocol bootstrapping, liquidity ownership and control is expected to transition progressively toward:
community-controlled treasury frameworks,
or a dedicated strategic liquidity reserve.
4) Liquidity base asset evolution (long-term)
The current liquidity base asset is wstETH, aligning the token structurally with ETH exposure.
Over the long term, governance may choose to evolve the liquidity foundation (base asset / reserve structure) depending on:
