Historical retrospective · DeFi
The 2020 DeFi boom demonstrated smart-contract composability
During 2020, lending, trading and liquidity protocols increasingly used one another’s tokens and contracts as inputs to new applications.
Composability let builders move quickly, but it also created interconnected failure paths across protocols.
The episode established both DeFi’s rapid innovation model and the difficulty of assessing risk by looking at one contract in isolation.
A product’s visible interface may depend on layers of external contracts, oracles and governance that deserve separate scrutiny.
Primary source
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