A bipartite graph is a type of graph consisting of two distinct sets of vertices. In this graph, every edge connects a vertex from one set to a vertex from the other set, ensuring that no two vertices within the same set are connected.

In the context of decentralized finance (DeFi) and token exchanges, bipartite graphs can illustrate relationships between different entities, such as users and the tokens they hold. Each user can represent one set of vertices, while the tokens represent another.

These graphs help in analyzing interactions, such as trading or staking activities, and can identify patterns in user behavior. By visualizing these connections, platforms can optimize user experience and improve liquidity by matching users with available tokens or services.

Furthermore, bipartite graphs can support various algorithms for tasks like recommendation systems. Overall, they contribute to a deeper understanding of ecosystem dynamics and enhance decision-making processes across platforms.