Fragmented liquidity is DeFi’s central scalability risk.

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Opinion by: Hart Lambur, co-founder of Risk Labs.

Decentralized finance, or DeFi, is built on composability, but composability is breaking. As new chains proliferate, liquidity fragments and incentives weaken.

What was once a single shared environment has splintered into dozens of siloed markets. DeFi isn’t dead, but without the infrastructure that connects these environments, it may lose what made it powerful.

Fractured liquidity is becoming DeFi’s central scalability risk. While expanding to multiple chains was a natural response to Ethereum’s…



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Fragmented liquidity is DeFi’s central scalability risk.



Opinion by: Hart Lambur, co-founder of Risk Labs.

Decentralized finance, or DeFi, is built on composability, but composability is breaking. As new chains proliferate, liquidity fragments and incentives weaken.

What was once a single shared environment has splintered into dozens of siloed markets. DeFi isn’t dead, but without the infrastructure that connects these environments, it may lose what made it powerful.

Fractured liquidity is becoming DeFi’s central scalability risk. While expanding to multiple chains was a natural response to Ethereum’s…



Source link

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

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