But high liquidity is required to make it more effective, secure, and more resistant to Sybil Attacks. And how does it achieve a state of high liquidity? Reputation, and I'm sorry Kruw, but it needs a little "trust" from the users or else they won't send their outputs to the coordinator, and therefore might not have the required liquidity.

Technically, yes the system is trustless. But we're talking about the social trust required if to use the system or not. It's like those normies who question the feasibility of Bitcoin because "Satashi might come back and change the algorithm".