# Capital Inefficiencies At the time of writing, most DEX (stableswap or invariant curve) have some sort of capital inefficiencies. This means that capital locked in the protocol is not being used to its full potential. **Liquidity fragmentation** An example of capital inefficiencies is how most protocols fragment their liquidity into multiple pools; **USDT liquidity in Curve is spread around 5 pools.** This makes the capital requirement for USDT 5 times higher than necessary to provide a similar service. The same happens with **Uniswap, which has +100 pools containing USDT**. These pools cannot share liquidity with each other. **Obligation to provide liquidity in pairs** Another issue most stable swaps exhibit is the obligation to provide liquidity in the form of pairs, in essence, the need to have an equal value of 2 tokens in order to be a liquidity provider. Curve tries to solve this problem by allowing single-side deposits. However, it still only uses the liquidity up to the least abundant asset in the pool, making the least popular token the bottleneck for the growth of the pool. Moreover, it is impossible to add new tokens to an existing pool (particularly if the new token’s liquidity is not comparable to other existing tokens in the pool), which hinders the scalability of the protocol. ### Community Market Solution Market allows for single-side liquidity provisioning. This means you only need one type of token to become a liquidity provider. **Single-side liquidity provisioning helps combat capital Inefficiencies by reducing the number of unnecessary pools.** In Market, the number of pools will only ever equal the number of accepted tokens in the protocol. This allows for the reduction of liquidity fragmentation across the protocol. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.communityfinance.io/limitations-on-current-stable-swap-protocols/capital-inefficiencies.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.