> For the complete documentation index, see [llms.txt](https://docs.txflow.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.txflow.com/txflow-l1/shared-liquidity.md).

# Shared Liquidity

### Overview

Shared Liquidity is the economic foundation of TxFlow.

Every Channel inherits liquidity from the same underlying liquidity layer.

### Benefits

* Capital Efficiency
* Reduced Fragmentation
* Shared Settlement
* Shared Risk Infrastructure

### Components

#### Protocol Vault Liquidity

Chain-owned liquidity.

#### User Vault Liquidity

Community-supplied liquidity.

#### Market Maker Liquidity

External market making capital.

### Capital Flow

```
Vaults
   │
Shared Liquidity Layer
   │
Channels
   │
Applications
```