Definition ∞ DeFi structural innovation pertains to the creation of novel frameworks and architectures within decentralized finance protocols. This involves developing new economic models, governance mechanisms, or technical implementations that advance the capabilities of decentralized applications. These innovations aim to address existing limitations and expand the scope of financial services available on blockchain networks. Such advancements are critical for the sustained growth and utility of the DeFi sector.
Context ∞ Current discussions surrounding DeFi structural innovation often highlight the transition towards more composable and interoperable protocols. The pursuit of greater scalability and reduced transaction costs remains a primary driver for new architectural designs. Regulatory bodies are closely observing these innovations, assessing their potential impact on financial stability and consumer protection.
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