Composability

Definition

Composability is the ability for DeFi protocols to interact and build upon each other seamlessly, often called 'money legos.' Because smart contracts are open and permissionless, any protocol can integrate with any other, creating complex financial products by combining simple building blocks. This is a defining feature of DeFi that traditional finance lacks.

Example

Risks to Consider

Common Questions

Related Terms

• Smart Contract
• DeFi (Decentralized Finance)
• Flash Loan
• Lending (DeFi Lending)

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