Why Liquidity Fragmentation Is a Hidden Challenge in DeFi
As DeFi ecosystems grow, liquidity often becomes scattered across multiple pools and platforms.
While this expansion signals growth, it also creates fragmentation — making it harder to achieve optimal pricing and efficient trade execution.
When liquidity is divided, traders may experience higher slippage, inconsistent rates, and reduced capital efficiency.
That’s why modern DeFi infrastructure increasingly focuses on aggregation, smart routing, and liquidity coordination.
In maturing ecosystems, solving fragmentation isn’t optional — it’s necessary for sustainable growth.