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  1. Home
  2. /Glossary
  3. /Composability
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defi

Composability

The ability to combine different DeFi protocols like building blocks to create new financial products.

Definition

The ability to combine different DeFi protocols like building blocks to create new financial products. You might deposit ETH into Lido, use the stETH as collateral on Aave, borrow stablecoins, and farm yields with them. This is why DeFi is sometimes called 'money Legos.'

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Related Terms

DeFi (Decentralized Finance)

Financial services built on blockchain without traditional intermediaries.

Smart Contract

Self-executing code stored on a blockchain that runs when conditions are met.

Protocol

A set of rules governing how a network or application operates.

1inch

A DEX aggregator that splits trades across multiple decentralized exchanges to find the best overall price.

Aave

One of the biggest lending and borrowing protocols in DeFi.

Across Protocol

A cross-chain bridge that uses an optimistic verification system and a network of relayers to move tokens between chains quickly.

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