#Liquidity101 Do you know that liquidity in a Blockchain is often inversely proportional to revenue? Let me briefly explain using DeFi $CAKE as an example.

We can see that the TVL of Pancakeswap, based on data from DeFiLlama, is currently around $1.7B++ and the DEX volume is about $12B++. What does that mean? It means that the DeFi is very healthy and good, allowing for a very high APR from swap fees.

This is a real example that revenue can be high even though TVL is below the volume. Conversely, TVL can be small, but revenue can also be very low if the volume is extremely small.

CAKE
CAKE
1.857
+1.30%