# SEN as the Heart of the Ecosystem

In the DeFi market, the most common difficulty for an application is liquidity accumulation. Liquidity is an essential component to create a stable, reliable market, and attract users. Many DApps were struggling over the years to find liquidity, while a small number of top protocols took reign on almost all liquidity on the market.

Let’s examine a typical example for a swap on Solana. An LP deposits a set of SPL Token&#x73;*<mark style="color:purple;">\[10]</mark>* to a corresponding pool and receives an amount of LP tokens (LPT) according to their proportional contribution. In a way, LPT contains some values, so theoretically they can be exchanged or mortgaged. In the early era of DeFi, this point was usually skipped and LPT couldn’t be consumed.

To optimize the cash flow, a concept named **Yield Farming** has been introduced. It brought several advantages such as expanding cash flow, diversifying services, and bootstrapping liquidity. After staking LPT into a farm, LP also receives a farming token. Similar to the root problem, no service is available for farming tokens currently.

With an alternative approach, there are a number of lending & borrowing services that accept LPT as collateral to mint stable tokens. This solution is more creative and able to tackle the problem that farming has faced. A bottleneck here is that the number of accepted LPT is very limited due to assessment difficulty.*<mark style="color:purple;">\[11]</mark>*

By putting SEN in all pools, we can reduce the risk of fake tokens and accelerate the process of assessment for example. Now all fees can be converted to SEN. It’s very meaningful for the foundation to realize the concept “BuyBack and Make”. The foundation can allow a fraction of the fee to be converted to SEN and automatically transmitted to other services.

Now, SEN is regarded as a universal interface. Other services can rely on and leverage automated processes.

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*<mark style="color:purple;">\[10]</mark>* solana-labs, “[solana-labs/solana-program-library](https://github.com/solana-labs/solana-program-library),” 06 2020.

*<mark style="color:purple;">\[11]</mark> D. Lau, D. Lau, and S. Teh,* [*How to DeFi*](<https://books.google.nl/books?id=g6WazQEACAAJ >)*. Independently Published, 2020.*


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