High Frequency Defi

Definition ∞ High Frequency DeFi refers to decentralized finance activities characterized by extremely rapid execution of trades and financial operations, often driven by automated algorithms and minimal latency requirements. This approach mirrors traditional high-frequency trading but operates directly on blockchain protocols. It demands highly optimized infrastructure.
Context ∞ High frequency DeFi presents opportunities for increased market efficiency and liquidity, but also carries risks such as potential for front-running and network congestion. Its growth underscores the increasing sophistication of digital asset markets and the demand for faster, more responsive decentralized financial instruments. News frequently covers the technological advancements and market dynamics within this evolving sector.