1.1 Background Overview

The emergence of digital tokens, represented by Bitcoin and Ethereum, is rapidly shaking the traditional monetary and financial systems. As the influence of digital assets grows, financial services revolving around digital asset trading and asset management are becoming increasingly popular. However, the isolation between major public blockchains, complex trading and exchange processes, have led to increased costs and risks, and reduced profit margins. Moreover, the anonymity and lack of interoperability between nodes and currencies, and the absence of protocol mechanisms, impede the establishment of a decentralized trust system across different systems. This limitation restricts the freedom of digital assets, hindering their acceptance as financial tools by the masses.

Given the characteristics of digital tokens (anonymity, security, and global circulation), a significant amount of capital globally could achieve better liquidity and risk aversion through digital tokens. However, the free circulation of digital assets is currently hampered by complex processes, high fees, and low efficiency.

The essence of finance is credit, aiming at resource allocation. Blockchain inherently transfers trust within a community through a consensus mechanism, allocates resources through community self-governance, and manages operational risk through the circulation of digital tokens. Technically and ecologically, building a truly decentralized financial alliance to realize the freedom of digital assets represents a gradient improvement in the blockchain financial system. This involves evolving from basic peer-to-peer payments and distributed ledger to cross-chain circulation and ultimately achieving a widespread digital financial industry transformation. Continuously breaking down industry barriers is essential to realize true asset freedom.

Digital tokens are highly community-oriented and self-regulated decentralized applications. DeFi, as an application of cross-chain technology, starts from deepening the value-added business of digital token assets. It leverages blockchain's advantages in data encryption, internet freedom, and decentralization, uniting highly self-regulated communities to create a more liberated decentralized financial world.