Worse prices due to trapped Liquidity Even if there exists enough liquidity in the market, they still only exist in separate silos, not at the place users would like to trade.
Problem 1. Worse Price
Market liquidity exists in silos, on different exchanges, on different L1, L2 chains.
Problem 2. High gas fees
Trading cannot happen on the chain and platform most convenient for the user.
Problem 3. Expensive Liquidity
Traders must overpay liquidity providers in protocol tokens and trading fees.
