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Composability in DeFi: Building Blocks That Redefine Finance

  • Composability in DeFi refers to the ability of different protocols and applications to seamlessly connect and interact with each other.
  • DeFi protocols are built on open-source code and blockchain technology, enabling permissionless innovation and collaboration.
  • Composability allows developers to combine existing tools and create new products without rebuilding the basics, democratizing financial innovation.
  • While composability offers significant benefits, there are risks such as smart contract vulnerabilities and complex interdependencies.
  • The future of composability in DeFi includes cross-chain integration, incorporation of real-world assets, and the potential use of AI-powered strategies.

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