DeFi and interoperability

The DeFi ecosystem is worth $44billion today and Ethereum makes up $25billion of that. If blockchains cannot talk to each other, users of non-Ethereum blockchains such as Polygon and Avalanche are unable take advantage of the value made in the biggest DeFi community. Think of each DeFi community as a different economy and, in the case of DeFi, “interoperability” means that two or more blockchain systems can “cross-communicate”, or talk to each other, and make transactions without any problems. Interoperability is important because it can improve the user experience and there could certainly be greater adoption if our current need to sit down and read 25 different whitepapers about each chain's pros and cons before using DeFi can be avoided. Thus, interoperability is imperative.

Value of DeFi assets

Source: Defilama

Importance of interoperability in DeFi

Many DeFi protocols tend to work alone and not with other protocols. A fragmented environment can make different protocols and networks c…