Definition ∞ Cross-chain liquidity signifies the availability of digital assets that can be seamlessly transferred and utilized across different blockchain networks. It allows for the movement of value and data between disparate blockchain ecosystems. This interoperability is fundamental for a connected decentralized economy.
Context ∞ Developments in cross-chain liquidity often revolve around the introduction of new interoperability protocols, bridges, and liquidity aggregation services. Debates frequently occur regarding the security risks associated with these bridging mechanisms and their impact on overall market efficiency.
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