Multi-chain interoperability protocols significantly enhance the decentralized finance (DeFi) ecosystem by enabling seamless asset transfers, data sharing, and smart contract interactions across diverse blockchains. These protocols, such as Polkadot, Cosmos, and Chainlink CCIP, break down silos, fostering liquidity, scalability, and innovation. They allow DeFi platforms to access broader markets, aggregate liquidity from multiple chains, and offer users diverse financial products without being confined to a single blockchain. This connectivity reduces fragmentation, lowers transaction costs, and improves capital efficiency. Moreover, interoperability enhances user experience by simplifying cross-chain operations, enabling faster and more secure transactions. It also promotes collaboration between ecosystems, driving the development of complex DeFi applications like cross-chain lending and decentralized exchanges. However, challenges like security risks and protocol complexity remain. O