CryptoIntermediate

Money Legos

a.k.a. Composability

DeFi apps that can be snapped together and built on each other, like Lego bricks.
In plain English

DeFi apps that can be snapped together and built on each other, like Lego bricks.

Money legos describes how DeFi apps plug into each other. Because they're all smart contracts on the same open blockchain, a new app can use an existing exchange, lending market or stablecoin as a building block without asking anyone's permission. The fancy word is composability.

You might deposit tokens into a liquidity pool, get a receipt token back, then lend that receipt somewhere else to earn more. It's a fast way to build. It also stacks risk: if one brick at the bottom cracks, everything on top of it wobbles.

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