Interdependency Mapping
Interdependency Mapping is the practice of visualizing and analyzing the connections between different protocols, assets, and market participants. By understanding how one platform relies on another for liquidity or collateral, analysts can identify hidden systemic risks.
In the decentralized finance ecosystem, this often involves tracking the flow of wrapped tokens and shared liquidity pools. When these connections are opaque, the risk of contagion increases significantly.
Mapping these dependencies allows developers and users to assess the potential impact of a failure in one part of the system. It is a proactive approach to managing the complexity of modern financial architectures.