Bitcoin has long grappled with a fundamental constraint: liquidity tends to stay put on L1, creating inefficiency. The architecture isolates capital rather than mobilizing it.

What's changing now is that new approaches are enabling something different—movement without compromising security. Instead of keeping assets locked in place on layer 1, there's a pathway for value to flow in and out of Bitcoin fluidly. The mechanism routes capital seamlessly across the network.

This matters because dormant capital becomes active. That idle liquidity suddenly has a purpose, can be deployed more efficiently. You're not just reshuffling the same pool—you're making capital work harder while maintaining the security guarantees that make Bitcoin valuable in the first place.