# Market Problems

Emerging-chain assets usually sit in thin, scattered pools. Depth depends on short-term incentives. When those incentives end, external LPs leave, and the protocol has to keep paying to *rent* liquidity.

For on-chain RWAs the cost of that pattern is higher. Reliable trade depth, transparent valuation, and capital that will stay all matter more than they do for a purely speculative pair.

A holder who wants to move between a community meme, a stablecoin, and a tokenized blue chip still has to hop through extra legs, pay extra fees, and take extra slippage. There is no shared house that owns the other side of those markets.

House of Liquidity's judgment: community activity can form bootstrap capital first. The protocol can then turn that capital into assets and liquidity it actually owns. Once the protocol owns the liquidity, fees stop leaking only to short-term LPs and can become ongoing Treasury income.

Those judgments become four [design goals](/design-goals).