# Built-In Liquidity

Chains built with the Canopy framework come with Built-In Liquidity as a core feature in the form of **trustless token exchanges** (token swaps).

Thanks to Canopy's [One-Way Interoperability](/docs/canopy-network/core-features/one-way-interoperability.md) cross-chain functionality may be built without the counter-asset chain's permission.

Enabling:

* Trustless token exchanges between **Root & Nested chains.**
* Trustless token exchanges between **External chains** (Ethereum, Solana, Bitcoin) and **Canopy chains**.

***

This functionality increases ecosystem liquidity with limitless expansion and connection, creating cross-pollination of assets, users, and tooling between the diverse landscape of Web3. 

**Since token exchanges through Canopy are built via permissionless interoperability, external chains can use and benefit from the token swaps without actually having to do any development work!**

{% hint style="info" %}
Committees are leveraged to create on-ramps and off-ramps to popular stables like USDC and USDT
{% endhint %}

And due to the composable architecture of Canopy interoperability features, pre-built liquidity paths may be reused across multiple chains:

```
Canopy Chain A <-> BTC Plugin
Canopy Chain B <-> ETH Plugin
ETH Plugin <-> Canopy Chain C <-> BTC Plugin
```

This means any new chain may use a pre-built token exchange plugin for instant liquidity or DeFI functionality.

***

**Beyond just functionality, each token swap generates fees, contributing to a sustainable economic model for Canopy chains.**&#x20;

↑ These fees ↑ serve as a continuous revenue stream, ensuring that chains benefit financially not only from their core utility but also from ongoing network activity.

{% hint style="info" %}
You can learn more about token swaps [here](/docs/canopy-network/how-does-canopy-work/state-machine.md#token-swaps)!
{% endhint %}


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