DeFi

What Is Composability?

The ability of DeFi protocols and tokens to work together like building blocks.

Definition

Composability means one protocol can use another's output without anyone signing an integration agreement. A token minted here works there. Strategies that would need a business development team in traditional finance get assembled in an afternoon.

How it works

Shared token standards do it. SPL on Solana, ERC-20 on Ethereum. Any program that accepts the standard accepts every token that implements it, including ones that did not exist when the program was written.

In Continuum

L/S tokens are plain SPL tokens, so they behave like any other token in your wallet. Post them on Kamino, route them through Jupiter, wire them into whatever you're building. None of those protocols needed to know Continuum existed.

Related terms

More defi terms

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