Vertical DeFi Integration

Definition ∞ Vertical DeFi integration refers to combining multiple stages of a decentralized financial service within a single platform or protocol. This involves a single entity or application providing a comprehensive suite of decentralized finance services, such as asset issuance, lending, borrowing, and trading, all under one cohesive interface. It aims to create a streamlined user experience by reducing the need to interact with separate protocols for different financial operations. Such integration can enhance capital efficiency and create stronger network effects within the integrated ecosystem.
Context ∞ The trend towards vertical DeFi integration is a strategic move by many protocols to offer more complete financial solutions and capture a larger share of user activity. Debates often concern the potential for increased centralization within these integrated platforms and the trade-offs between specialization and comprehensive service offerings. Future developments will likely explore modular approaches to integration, allowing for flexible combinations of services while preserving decentralization.