The goal of this function is to promote good outcomes, not bad ones. The positive outcome is to assist projects and our ALT token to lock up their liquidity in the protocol. When users keep their liquidity locked up the protocols are more liquid which maximises efficiency of the entire Aptos ecosystem.
The issue with current Aptos liquidity pool models is inconsistency. The current mechanism for acquiring liquidity is through a high APY %. The high APY % attracts liquidity providers. However, as more people provide liquidity for the protocol, the APY % becomes smaller as trading fees are spread out among more users. As the APY decreases users will pull their liquidity and find the next protocol. Leaving the Dex illiquid and with many issues.
Community participation is extremely important for all crypto protocols. The more users equates to a higher protocol value. The most common practice for protocols acquiring new users is through incentive systems with high rewards. It is very common for protocols to offer a high APY % and airdrops. It is fair to assume that most rational crypto participants are profit-maximising people. They will flock to whoever offers the most rewards. However, most of this is just a short term solution.