CashmereLabs Mainnet Development Update 1.0: Introducing the Liquidity Quantum (LQ) Model

Cashmere Labs
2 min readSep 5, 2023


In the rapidly evolving world of decentralized finance (DeFi), new strategies and models continually emerge to address the sector’s complex challenges. Among the recent innovations, Cashmere’s Liquidity Quantum (LQ) model stands out, promising to reshape liquidity strategies in DeFi.

In the intricate landscape of cross-chain technology, Cashmere has pioneered a solution unparalleled within the industry. This innovative approach allows users to infuse liquidity into any asset on cross-chain and facilitate its exchange with the efficiency of a singular transaction and payload.

Cashmere elevates its standing in the market by offering sophisticated arbitrage on weight-dependent cross-chain liquidity, coupled with an unparalleled user experience.

Figure: Example showing a Liquidity Quantum model.

Cross-chain AMM Solution:

Uniquely, Cashmere has developed a solution for integrating volatile pools across chains — a challenge that platforms like Stargate, Hop, Connext, and Across have yet to address.

The underlying logic is elegantly crafted, abstracting the token swap costs within the pool into a universally applicable cross-chain Liquidity Quantum (LQ) credit system. The computation of LQ units is meticulously done, factoring in the weights and benchmark values of assets within the pool.

Furthermore, any asset within these pools can be seamlessly transacted using the abstracted LQ credit units.

The Promise of the Liquidity Quantum (LQ) Model:

Cashmere’s LQ model presents a groundbreaking approach that diverges from traditional liquidity paradigms. It offers a unique combination of mathematical intricacy and practicality, enabling it to address the challenges of cross-chain Automated Market Makers (AMM) and liquidity management. With its robust capabilities, the LQ model surpasses other platforms such as Across, Wombat, Hop, Connext, Stargate, and other native L2 bridges. At its core, the LQ model represents a beacon of innovation in the vast DeFi landscape.

Revisiting Traditional AMM Strategies:

Historical AMM models have primarily relied on deterministic equations. These equations, though effective in certain scenarios, have limitations in a rapidly changing DeFi environment.


We are currently immersed in the intricate research phase of our mainnet development, a venture filled with complexities. We extend our heartfelt gratitude to our dedicated community for their unwavering patience and support. As we progress, we remain committed to pioneering a cross-chain AMM of unparalleled innovation, designed to seamlessly support stablecoins, liquid staking derivatives, and other dynamic assets.

If you wish to stay updated with our latest developments, follow us on our official Website, Twitter, Telegram, and Discord. Let’s continue to build a stronger and more connected world together.

Here’s to making strides in the world of decentralized technology with CashmereLabs!