Unified Liquidity

Definition ∞ Unified liquidity refers to the aggregation of trading capital from disparate sources into a single, accessible pool. This approach aims to enhance market depth and reduce price slippage for traders. It is often implemented across different decentralized exchanges or trading platforms.
Context ∞ The concept of unified liquidity is gaining traction as a strategy to address fragmentation in decentralized trading markets. Discussions frequently center on the technical challenges of aggregating liquidity across diverse protocols and the potential benefits for traders and market makers. Future developments are expected to focus on advanced aggregation techniques and cross-protocol liquidity solutions that improve overall market efficiency.