Liquidity providers in DeFi face substantial hidden costs when moving capital between pools, including gas fees, slippage, and impermanent loss. This fragmentation of liquidity across numerous protocols and chains creates inefficiencies, diluting volume and reducing LP profits. DEX aggregators address swap optimization but don’t solve the underlying problem of manual position management and costly rebalancing. The solution lies in unified liquidity layers, allowing capital to be deployed once and accessed across multiple venues. Overcoming this fragmentation represents a significant opportunity to unlock trapped efficiency and drive the next wave of DeFi value.
Liquidity Fragmentation Is Bleeding LPs Dry · Blockster
