Bridge liquidity refers to the availability of assets that allow the seamless transfer of value between different blockchain networks. As various blockchains serve distinct purposes and host unique tokens, users often want to move assets from one chain to another. This movement typically requires liquidity providers or protocols to facilitate trades and ensure that there are enough tokens on both sides of the transaction. For example, if someone wants to transfer tokens from Ethereum to Binance Smart Chain, they need access to liquidity on both platforms. When bridge liquidity is high, users can quickly and efficiently convert their assets without significant price slippage or waiting times. Conversely, low bridge liquidity can result in delays or unfavorable exchange rates. Providing liquidity to these bridges often involves users locking their assets in a smart contract, which then allows the transfer to occur while maintaining the respective tokens’ value on each chain. This mechanism fosters greater interoperability and enhances the overall user experience across different blockchain environments.