The DeFi Fragmentation Nobody Is Speaking About 

The Problem: Fragmentation in DeFi Isn’t Just About Liquidity, It’s Data. 

DeFi promised open, permissionless access to financial markets. But in reality, it has become a melting pot for fragmented liquidity, UX and data access.

For Users
Users are often required to jump between applications just to access different types of markets: lending here, staking there, swapping somewhere else. This friction isn’t just inconvenient, it significantly impacts user retention.

For Developers
Developers build DeFi with limited data feed access based on the network where they are developing. Each network has a different set of feeds available by whichever oracle they've integrated. But as many existing oracles only provide certain feeds, no DeFi application can have it all (for now).

DeFi applications may become irrelevant when they can’t respond quickly to user demands by deploying new markets for both core and emerging assets. These apps risk losing those users to more integrated ecosystems, which can involve users extracting value and bridging out of the underlying network ecosystem. The longer the delay in launching new asset markets, the higher the chance users move to platforms that already support them seamlessly.

The Result: A Slow Decline for New Networks

Newer L1 and L2s struggle to bootstrap competitive DeFi ecosystems. They either can’t access oracle feeds to build competitive DeFi products or are stuck with the same price feeds as existing more established networks. Existing oracle infrastructure often can’t meet demand for native asset feeds, let alone long-tail tokens or fast-emerging markets.

Additionally networks may be forced to fork out hundreds of thousands or millions for native asset feeds. As a result, these networks face a brutal paradox: their native tokens become governance-only or limited to gas payments, offering limited real utility in a DeFi context. Their chain, well it bleeds into a slow irrelevance in an already over saturated market. 

Without native price feeds, protocols can't launch lending markets or staking opportunities for these tokens, locking developers and users out of key use cases. The result is value slowly bleeding out of the ecosystem as users migrate to more complete, accessible platforms with deeper asset coverage, after extracting originally over-inflated APRs.

The Solution: On-Demand Feeds with SEDA

SEDA solves data feed fragmentation by enabling on-demand oracle infrastructure that can be configured to support data feeds for any asset, including native tokens, in seconds. Whether a protocol seeks to integrate feeds for newly issued tokens, derivatives, or its own governance token, developers can instantly configure the required data feeds using SEDA’s infrastructure.

A recent internal demo highlighted this capability: our CEO deployed a single oracle program that contained the full asset feed catalogue of an existing oracle provider, plus 1,250 additional assets, in under four hours. That’s the kind of speed and flexibility today’s networks need to stay competitive. When new markets experience turbo-traction, which is common practice in crypto, emerging networks could deploy markets to attract liquidity. What’s better is they can build the DeFi ecosystems that will retain users and stop the reverse extraction back to established DeFi products. 

Why It Matters

In a world where tokens rise and fall overnight, being able to respond to volatility and new opportunities in real time isn’t optional for new networks, it’s survival. SEDA gives developers the tools to create custom oracle feeds that can support any potential use case, at any time. No waiting on legacy oracles. No friction for users. Just fast, modular oracle infrastructure, ready to support DeFi apps as they scale with demand.

Take your user experience further with dynamic oracle feeds to double down on in-application features: https://x.com/Matt_Peters92/status/1915022358022160484

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