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‘Solvers’ can help address fragmented liquidity in DeFi by enabling interoperability across chains through a unified execution layer that allows for invisible bridging and composability at the infrastructure layer

July 2, 2025 //  by Finnovate

Decentralized finance (DeFi) is facing a significant challenge as the proliferation of new blockchains has fragmented its once-unified liquidity, threatening its core advantage of composability. The fragmentation of DeFi’s liquidity across dozens of L1s, rollups, and appchains creates fundamental inefficiencies, such as thinner markets, higher slippage, and weaker user and protocol incentives. The shift to multichain has been necessary for scaling, but without a way to emulate composability across chains, it risks undermining DeFi’s success. The lack of a unified execution layer in DeFi systems has led to inconsistent interfaces, fragmented pricing, and uncertain outcomes. Solvers, sophisticated actors, can help solve this issue by enabling interoperability across chains. By expressing an intent, solvers execute across chains, abstracting away the complexity underneath. This approach allows for invisible bridging, allowing one-click swaps, deposits, or interactions that move across chains without the user needing to manage the complexity. Multichain is not just theoretical anymore, but the environment in which DeFi operates today. Without solving for composability at the infrastructure layer, DeFi may not scale with it. The risk is not dramatic collapse, but slow erosion of thinner liquidity, weaker incentives, and fewer things that work across chains. Solver infrastructure offers a way out by mimicking the experience of synchrony across fragmented chains, preserving DeFi’s power and unlocking what comes next.

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Category: Crypto & Blockchain, Innovation Topics

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