[Acrobatic_Road]

>Instantly liquid programmable assets

Since nobody really answered this one I'll explain it.

Let's say you create 1,000,000 Blah-Tokens. Problem: your new asset has 0 liquidity. Right? Because there isn't a market for it. If you get it listed somewhere, there still won't be a market until people start placing buy and sell orders. So, can ethereum fix this? Yes! With an automatic market maker like uniswap. Put your 1M fresh tokens in a pool alongside some ETH. We'll say this pool will obey the law xy=k, x and y being the two tokens. We'll also say that the exchange rate shall be x/y.

Now anyone can come along and transact with you and the liquidity is already there! No order book is required. The price is quoted and tokens are added/removed from pool in accordance with xy=k. You get a fee for being nice enough to supply the liquidity. Oh, and anyone can supply their own tokens and split the fees with you. Wa-la.

[KSteffensen]

So liquidity here means whether there is a demand for my Blah-tokens, whether people are willing to buy it for their hard earned cash, gold bars, coffee beans or whatever.

How does Ethereum help create a demand for my Blah-tokens? I can already open a web-shop that sells Blah-tokens. I'm fairly sure the demand will be very low, though. Please explain further how an 'automatic market maker like uniswap' will create demand for my Blah-tokens.

[literallycancer]

You should probably read up on how automated market makers work. It's going to take a long time to get to the interesting parts if you just guess randomly and expect people to correct you.

[Acrobatic_Road]

It doesn't create demand, it just makes it liquid which would otherwise be a tremendous hurdle.

Liquid markets enable demand though.