DeFi Innovation Layer

Definition ∞ The DeFi Innovation Layer refers to the emergent stratum of new protocols, applications, and financial products built upon existing decentralized finance infrastructure. This layer drives advancements in financial services, offering novel ways to manage, trade, and derive value from digital assets. It represents the frontier of decentralized financial engineering.
Context ∞ The current state is characterized by rapid experimentation and the continuous introduction of specialized financial primitives and services. A key development to watch for is the convergence of the DeFi innovation layer with real-world asset tokenization, bridging traditional finance with blockchain capabilities and expanding market reach.