GlossaryAdvanced
Composability
The ability for different DeFi protocols to integrate and build on top of one another.
Composability refers to the ability of different DeFi protocols and smart contracts to interact with and build directly on top of one another, since they're all deployed on the same open, programmable blockchain.
This is often described using the phrase "money legos": developers can combine existing protocols as building blocks, but it also means a vulnerability or failure in one composed protocol can potentially affect every protocol built on top of it.
Examples
- A new protocol might be built by composing an existing lending protocol with an existing DEX.
- Composability enables rapid innovation, but also means risk can propagate across connected protocols.