How LI.FI Solves the Cross-Chain Liquidity Puzzle

HyperNest Podcast is a monthly series where we meet Web3 founders, industry leaders, and blockchain experts to discuss various topics in the web3 space.

As the DeFi ecosystem continues to scale across Layer 1, Layer 2, and novel app chains, one persistent challenge has come into sharp focus: cross-chain liquidity. While market demand for decentralized financial products is growing, the fragmented liquidity across blockchains has become a major barrier to user experience, protocol growth, and capital efficiency.

The problem isn’t that liquidity lacks—it’s that it’s scattered. Routing assets from one chain to another can be slow, expensive, and confusing. Slippage, trust assumptions, multiple hops, and user fatigue are real obstacles. For builders tackling lending, RWA tokenization, or any multi-chain use case, overcoming cross-chain liquidity fragmentation is now table stakes for success.

In this episode of the HyperNest Podcast, we sit down with Andrei Duma, Head of DeFi at LI.FI—a protocol quietly powering a huge share of Web3’s cross-chain activity. If you’ve ever used MetaMask, Phantom Wallet, or Hyperliquid, chances are you’ve already interacted with LI.FI.

Meet the Guest: Andrei from LI.FI

Andrei serves as the Head of DeFi at LI.FI and has been building in the blockchain space since 2017. After initially exploring trading and investing during the ICO era, he transitioned into building protocols and investing in early-stage teams.

His journey eventually led him to the interop space, where the problem of cross-chain liquidity became increasingly evident. For nearly three years, Andrei has been working with LiFi to bridge these infrastructure gaps, enabling seamless swaps, bridging, zapping, and contract calls across disparate ecosystems.

Highlights: What We Learned from the Podcast

1. The Problem Is Fragmentation, Not Liquidity

– Every DeFi app eventually hits the cross-chain wall—whether sourcing liquidity, onboarding users, or supporting new networks.

– Bridges alone aren’t enough. User friction, slippage, and multiple transaction steps kill UX.

– Standards vary widely (ERC-20, OFT, CCIP, etc.), making routing logic even more complex.

2. What Makes LI.FI Different

Aggregates over 100 liquidity sources, including 18+ bridges, multiple DEX aggregators, and direct venues.

Uses an off-chain routing engine to calculate best route execution based on:

– Price

– Slippage

– Gas fees

– Confirmation time

Users get options: fastest route, cheapest path, or most secure bridge—ranked transparently.

3. Zaps: One Transaction, Multiple Steps

– LI.FI enables “Zaps”—a bundled transaction that can include a swap, bridge, and contract interaction (like an LP deposit or token mint).

– This eliminates 5-7 manual steps and creates a one-click DeFi onboarding flow.

4. Flexible Integration: SDK, API, Widget

– Widget: Plug-and-play UI for teams who want speed with minimal dev work.

– SDK: For developers who want full customization and UI control.

– API: For backend-focused apps, wallets, and institutional platforms.

5. LIFI 2.0: New Infrastructure, Same Neutrality

– Catalyst acquisition: Enables intent-based bridging via a resource-locked mechanism.

– LIFI Solver: A fallback liquidity engine to speed up expansion to new chains.

– Airlift (by Glacis): Aggregates token standards (OFT, CCIP, ERC-20) to ensure seamless token routing.

Despite launching its own DEX aggregator and bridge, LI.FI remains neutral. Internal tools are only used if they offer the best quote—and currently account for only ~10% of total routing.

Embracing the Multi-Chain Reality

Andrei doesn’t believe in a future where users don’t know what chain they’re on. Fragmentation, he says, isn’t going away—VCs, users, and ecosystems are incentivized to launch new chains, not consolidate.

What LI.FI offers is a way to thrive within that reality. By enabling smarter routing, reduced friction, and full composability, LI.FI is becoming the invisible engine behind Web3 liquidity.

Whether you’re building a DEX, a lending market, or a new RWA product, integrating cross-chain infrastructure is no longer optional—it’s a requirement.

Want the Full Play-by-Play?

To catch the full energy, behind-the-scenes insights, and Altug’s unfiltered thoughts, you can listen to or watch the complete podcast episode.

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