Diesel pools are not lower liquidity. They have 20x more liquidity in the SwapBTC pool then we have in the BTC pool and a 200x higher TVL.
Magi pools are AMM, there are no market makers. And yes its all connected to lack of liquidity and not having funding to finish the protocol as fast as we would like.
RE: What the Git Logs Actually Say. Part II. 722,084 HBD: The Rise and Freeze of VSC / Magi Network