Predictable DeFi Markets: The Role of Liquidity

DeFi markets are known for their volatility, making it challenging to predict returns based on the efficient market hypothesis (EMH). According to this theory, asset prices reflect all available information. However, DeFi’s young nature, lack of regulations, and ongoing development often create unpredictable market dynamics. This requires a focus on improving market efficiency. THENA V3,3 is a key step in achieving this goal by introducing modular liquidity, increased efficiency, and automated governance.