Composability Layer

Definition ∞ A composability layer is a foundational component within a blockchain architecture that permits various decentralized applications and protocols to interoperate seamlessly. This layer enables independent components to connect and interact, building upon each other’s functionalities. It supports the creation of complex financial instruments and services from simpler, modular elements.
Context ∞ The concept of a composability layer is central to the expansion and utility of decentralized finance, often called “money legos.” It allows developers to combine existing smart contracts and protocols, accelerating innovation and creating novel financial products. Challenges persist in maintaining security and performance as interdependencies grow within these stacked systems.