Every DeFi protocol faces the same cycle. Launch incentives. Attract liquidity. TVL rises. The numbers look healthy.

Then emissions drop. Or a competitor offers higher yield. The capital migrates overnight. TVL falls. The protocol launches new incentives. Capital returns. Temporarily.

This is the liquidity treadmill. The protocol runs to stay in place.

The underlying problem: incentivized liquidity is a rental agreement disguised as a foundation. It creates the appearance of depth while remaining structurally temporary.

Protocols that break this cycle share one trait — they generate organic demand. Real trading volume. Real borrowing. Real utility that makes the protocol worth providing liquidity to even without token emissions.

Before you evaluate a protocol's liquidity, subtract the incentivized layer. What remains is the floor. If that floor is close to zero, you're looking at a treadmill, not a platform.