Liquidity Fragmentation in DeFi: A Problem on Its Way to Being Solved?

DeFi has made incredible strides in recent years, but one issue still lingers, slowing everything down: liquidity fragmentation. Each blockchain operates like an isolated island, with its own liquidity pools, protocols, and users. The result? Moving funds between different chains is often slow, expensive, and risky.

Bridges have tried to solve this, but let’s be honest… they’re far from a perfect solution. With repeated hacks and sometimes outrageous transaction fees, it’s clear the market needs a better approach.

New Strategies to Unify DeFi
Instead of relying on fragile bridges, some projects are exploring smarter liquidity management. For example, StakeStone has taken a different approach with omnichain liquid staking. The idea is simple: allow users to stake their assets (ETH, BTC, etc.) while remaining liquid across multiple blockchains.

Why is this interesting? Because it removes the constant need for swaps or bridges to access cross-chain opportunities. Today, StakeStone already manages over $470M in TVL, and its model is steadily gaining traction. Another key development: its token, $STO, will soon be listed on Bitget, potentially improving accessibility and adoption.

But it’s not the only project moving in this direction. PORT, for instance, is working on liquidity aggregation solutions to make the user experience much smoother.

Toward a Borderless DeFi?
We’re not there yet, but these new approaches show that a more unified, efficient, and accessible DeFi is possible. If the ecosystem is to continue growing, we must address this liquidity fragmentation problem once and for all.

What do you think? Are these solutions enough, or are we still far from a truly interconnected market?