This is the way it's suppose to work but the connect isn't there after the last
update. I've filed a bug report on Github Bugzilla.
Connect to other Friendica users
Visit their profile. Just beneath their profile picture will be the word 'Connect' (we're assuming this is an English language profile). Click that 'Connect' button and it will take you to a 'Connect' form.
The form is going to ask you for your Identity Address. This is necessary so that this person's website can find yours.
If your Friendica site is called "demo.friendica.com" and your username/nickname on that site is "bob", you would enter "bob@demo.friendica.com" in this form.
Notice this looks just like an email address. It's meant to be that way. It's easy for people to remember.
You could also put in the URL of your "home" page, such as "http://demo.friendica.com/profile/bob" instead of the email-style address.
When you've submitted the connection page, it will take you back to your own site where you must then login (if necessary) and verify the connection request on your site. Once you've done this, the two websites can communicate with each other to complete the process (after your new friend has approved the request).
If you already know somebody's Identity Address, you can enter it in the "connect" box on your "Contacts" page. This will take you through a similar process.