Decentralized finance (DeFi) relies on composability, but with the rise of multiple blockchain networks, liquidity is fragmenting, leading to inefficiencies. As liquidity is now spread across various L1s and appchains, protocols like Aave and Pendle face challenges in accessing cross-chain liquidity, resulting in thinner markets and reduced user incentives. The shift to a multichain environment has fragmented the necessary shared liquidity that DeFi protocols depend on. User experience issues, often attributed to the complexity of managing multiple wallets and bridging, are symptomatic of deeper structural problems related to liquidity movement and execution across chains. To address these fragmentation issues, 'solvers' can streamline cross-chain actions by using intent-based infrastructure, allowing users to perform transactions without needing to navigate separate liquidity pools. This approach emphasizes the need for solutions that enable interoperability while preserving the strengths of individual chains. If these challenges remain unresolved, DeFi may experience gradual degradation rather than a sudden collapse.

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