Decentralized finance (DeFi), dependent on composability, faces significant challenges as new blockchain networks emerge, leading to liquidity fragmentation. This issue has turned a once-unified market into numerous isolated environments, diminishing the deep liquidity necessary for DeFi protocols to thrive. Protocols that successfully operated on Ethereum now encounter difficulties when deployed on multiple chains due to limited cross-chain access to liquidity, resulting in thinner markets and weakened incentives. The focus on user experience has overshadowed the deeper issue of fragmented execution layers and liquidity pools, complicating user interactions in DeFi. Solvers, sophisticated actors that execute user intents across chains, are proposed as a solution to improve interoperability. This intents-based infrastructure allows for seamless interaction across disparate blockchains, maintaining efficiency while enabling a synchronized user experience, crucial for DeFi’s scalability. Without addressing these foundational issues at the infrastructure level, DeFi may slowly erode rather than collapse dramatically, jeopardizing its foundational principles.

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