Definition
A liquidity bridge is a conceptual mechanism that connects token liquidity between two or more blockchain networks or layers. It focuses on enabling the presence and availability of tradable assets across distinct environments, so that tokens can be represented and accessed on multiple chains. As a concept, it emphasizes the continuity of liquidity rather than simple asset transfer or isolated token representation.
In Simple Terms
A liquidity bridge is an idea for linking token liquidity across different blockchains. It is about making the same or equivalent assets available to trade on more than one chain, so that liquidity is not trapped in a single network but can exist in several connected environments.
Context and Usage
The term liquidity bridge is commonly used in discussions about cross-chain coordination, multi-chain ecosystems, and designs that aim to keep trading depth aligned across networks. It often appears in conversations about how assets are represented on different chains, how liquidity is distributed between them, and how multi-chain markets remain connected at a conceptual level without treating each chain’s liquidity as fully isolated.