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Death by a Thousand Pools: Liquidity Fragmentation Threatens DeFi

Death by a Thousand Pools: Liquidity Fragmentation Threatens DeFi

Published:
2025-04-23 15:06:02
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The maturation of DeFi technology has led to increased competition for a finite pool of capital, fragmenting liquidity across protocols, chains, and token pairs. This fragmentation threatens genuine innovation and growth in the ecosystem as new protocols struggle to secure adequate liquidity for user adoption and value accrual.

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