> For the complete documentation index, see [llms.txt](https://docs.valantis.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.valantis.xyz/embedded-liquidity.md).

# Embedded Liquidity

## What is Embedded Liquidity?

Liquidity becomes exponentially more efficient when it is **embedded** — when liquidity venues are designed in deep collaboration with the unique traits of the assets they serve and the ecosystems they exist within.

This is the principle of **Embedded Liquidity:** the concept of structuring trading, yield, and collateral environments around the specifics of an asset's logic, behavior, and economic purpose.

<figure><img src="/files/kBCAaoWxDckaDLwXLo6B" alt=""><figcaption></figcaption></figure>

Hyperliquid presents a particularly compelling ecosystem in which to build embedded liquidity solutions. Valantis can embed itself into the Hyperliquid Stack not just by unlocking net new functionality using existing DeFi primitives, but also by integrating with the Hypercore Layer. DeFi's most robust orderbook allows for the creation of liquidity infrastructure that is not possible anywhere else.