Recently, I have been paying attention to the development of the DeFi ecosystem and discovered a project worth exploring—Walrus Protocol. As a next-generation decentralized liquidity protocol, its design concept is quite interesting.

Speaking of which, although DeFi has given us ample freedom, there are indeed many issues in actual operation. Cross-chain transfers require multiple exchanges, capital efficiency during liquidity provision is not ideal, slippage issues in lending transactions, high Gas fees—these are practical problems faced by users.

The core idea of Walrus Protocol is to simplify user experience while maximizing yield efficiency. From a technical architecture perspective, this protocol has several highlights. First is multi-chain coverage—already supporting mainstream public chains like Ethereum, BSC, Polygon, Arbitrum, etc., which means users have more options. More importantly, it adopts an innovative centralized liquidity management combined with smart routing technology. This combination can theoretically significantly improve capital efficiency.

The advantage of centralized liquidity is that it allows liquidity providers to concentrate their funds within specific price ranges, rather than spreading them across the entire price curve like traditional AMMs. This directly increases the utilization efficiency of each fund. Coupled with optimizations at the smart routing layer, transactions can find more optimal execution paths, thereby reducing slippage and costs.

From a product positioning perspective, Walrus aims to address pain points faced by DeFi users in cross-chain operations, liquidity management, and trading costs. This direction indeed targets some core issues in the industry. Of course, the actual effectiveness still needs to be observed in practical applications.