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

# Liquidity Modules

Protocol controlled liquidity is a module that allows the protocol to own and control the majority of protocol and treasury assets (i.e., USX, DF, etc) in the open market. It offers several advantages:

* Maximize liquidity and improve capital efficiency - it combats liquidity shortage of USX effectively by adding or removing protocol owned liquidity in response to market demands.
* Significantly reduce DF inflation by cutting off subsidies on rented liquidity.
* Now the protocol owns the majority of DF liquidity in DEXes (i.e., DF/USX pairs), which helps the protocol to generate more revenue from LP fees.