> For the complete documentation index, see [llms.txt](https://scalar.gitbook.io/scalar/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://scalar.gitbook.io/scalar/what-is-scalar/how-dapps-on-our-chain-benefit-from-liquidity.md).

# How Dapps on our chain benefit from liquidity

Our blockchain ecosystem is designed to enhance the liquidity and yield potential for  Dapps through strategic processes and mechanisms. Here's an in-depth look at how our chain facilitates this:

<figure><img src="https://1264362020-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FayQfWIPyUNviPHzjkEId%2Fuploads%2FqHIjODwsTeNyttHBCAX1%2Fdapp.JPG?alt=media&amp;token=89485b61-87b1-4aee-93c8-27729b66e868" alt=""><figcaption></figcaption></figure>

#### Liquidity Processes:

1. **Depositing Collaterals to Respective Chains:**
   * Users can deposit various types of collateral assets to their respective blockchain networks.
   * Once these collaterals are deposited, an equivalent value is minted on our blockchain. This process ensures that the liquidity is effectively transferred and utilized within our ecosystem.
   * By bridging assets from different chains, we enhance the overall liquidity pool available for our dapps.
2. **Minting Over-Collateralized Scalar Stablecoin:**
   * Users can mint a scalar stablecoin that is over-collateralized. This means the stablecoin is backed by collateral exceeding its value, providing stability and trust.
   * The over-collateralization mechanism ensures that the stablecoin maintains its value, reducing the risk of volatility and enhancing liquidity.

#### Yield Opportunities for Dapps:

Our liquidity mechanisms enable dapps on our chain to access and benefit from various yield-generating opportunities. Here are some key avenues:

1. **Decentralized Finance:**
   * Dapps within the DeFi space can leverage the liquidity on our chain to participate in lending, borrowing, staking, and yield farming activities.
   * These DeFi activities typically offer substantial returns, with yields ranging from 20% to 30%. This high yield potential attracts more users and liquidity providers to our ecosystem, creating a virtuous cycle of growth and profitability.
2. **Real-World Asset (RWA) MV99 Dapp:**
   * The RWA MV99 dapp is a specialized application within our ecosystem that can handle significant Total Value Locked (TVL), specifically $100 million or more.
   * This dapp is designed to tokenize real-world assets, bringing them onto the blockchain and enabling users to earn yields from traditionally illiquid assets.
   * Similar to DeFi dapps, the RWA MV99 dapp offers competitive yields of 20% to 30%, making it an attractive option for investors looking to diversify their portfolios with real-world asset exposure.
3. **Other Dapps and Their DeFi Mechanisms:**
   * Beyond the prominent DeFi and RWA dapps, our ecosystem supports a wide range of other dapps, each with its own unique yield mechanisms.
   * These dapps can offer varying yields, depending on their specific models, risk profiles, and market conditions.
   * This diversity in yield opportunities allows users to choose dapps that align with their investment strategies and risk appetites, fostering a dynamic and vibrant ecosystem.

#### Conclusion:

Our chain's approach to liquidity involves strategic collateral management and stablecoin minting, which collectively empower dapps to achieve significant yields. By providing a robust and flexible framework for liquidity utilization, we enable our dapps to thrive and offer competitive returns to users. This ecosystem of high-yield opportunities not only attracts more users but also drives innovation and growth within our blockchain.