Cross-Protocol Dependency Mapping

Cross-Protocol Dependency Mapping is the practice of visually and mathematically representing the relationships and dependencies between various decentralized protocols. This map highlights how protocols rely on each other for liquidity, price oracles, collateral, and governance.

By understanding these dependencies, users and developers can better assess the risk of a failure in one component affecting the entire ecosystem. For instance, if multiple lending platforms rely on the same price oracle, a failure in that oracle could lead to simultaneous liquidations across the board.

Mapping these dependencies allows for more informed risk assessment and the development of strategies to decouple systems where the risk of contagion is too high.