← DeFi glossary
Glossary · C
Composability
The ability of DeFi protocols to interoperate — to use each other's tokens, liquidity, and mechanisms as building blocks without permission. Because DeFi protocols share a common on-chain state, LP tokens from Uniswap can be used as collateral in Aave, which can be used to borrow tokens for Curve, and so on. Composability is sometimes called 'money Legos' — the distinguishing feature that makes DeFi more than the sum of its parts.
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