DeFi Interoperability

Definition ∞ DeFi interoperability describes the capability of decentralized finance protocols and applications to communicate and transact seamlessly across different blockchain networks. It allows for the fluid movement of assets and data, enabling users to access a wider array of financial services irrespective of their native blockchain. This fosters a more connected and efficient decentralized financial ecosystem.
Context ∞ The ongoing development and adoption of DeFi interoperability solutions are frequently reported in the news, highlighting new cross-chain protocols and the integration of disparate DeFi platforms. Key discussions revolve around the challenges of achieving secure and scalable interoperability, the potential for new financial primitives enabled by this connectivity, and the impact on market liquidity and user experience.