DeFi Connectivity

Definition ∞ DeFi connectivity refers to the capacity for various decentralized finance protocols and applications to interoperate and communicate with one another. This allows for seamless asset transfers, data sharing, and composable financial services across different platforms. Enhanced connectivity facilitates a more integrated and efficient decentralized financial ecosystem.
Context ∞ Improving DeFi connectivity remains a significant technical and developmental challenge within the blockchain space, frequently discussed in industry news. Innovations in cross-chain bridges, generalized messaging protocols, and interoperability standards are crucial for addressing fragmentation. The advancement of this connectivity is vital for the continued expansion and utility of decentralized finance.