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With the Alonzo update approaching, many teams seem to be working on DeFi projects that will go out along the Smart Contracts feature. On Ethereum, most DeFi projects use the Wallet Connect open protocol to communicate with wallet apps, but on Cardano it appears there is no such open protocol.

Is there any team working on an open Wallet communication protocol such as the ones present in the Ethereum ecosystem? If not, does it mean each Wallet App will need to come up with its own?

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There is no open standard published right now, but work is ongoing to create one.

Emurgo is working on porting the EIP-0012 Ergo standard that the Yoroi Ergo dApp connector is using to Cardano. Have a look at the CIP-Dapp-Connector pull request.

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