Financial Modules

Definition ∞ Financial modules are distinct, self-contained components within a larger decentralized finance protocol or application. Each module performs a specific financial operation, such as lending, borrowing, swapping, or yield generation. These modules can be combined or interacted with to create more complex financial products. Their modular design promotes flexibility and reusability in DeFi development.
Context ∞ The development of new financial modules is a continuous activity in the DeFi space, driving innovation and expanding the range of available services. News often highlights the launch of novel modules or upgrades to existing ones, along with their integration into broader ecosystems. Understanding the function and security of individual financial modules is crucial for assessing a protocol’s overall value and risk.