This article explains composability in DeFi and blockchain development using a hot rod analogy, detailing how different protocols and smart contracts can integrate seamlessly on Stellar to create more powerful financial systems. It covers DeFi building blocks, composability benefits, TVL growth, and practical considerations for building composable projects on Stellar.
The article uses a hot rod metaphor to introduce composability—the ability to combine different components to create complex systems. It then applies this concept to DeFi and blockchain, explaining how open-source, modular, and interoperable protocols enable builders to extend and integrate components across ecosystems. The piece outlines foundational DeFi building blocks including assets/tokens, payments, lending/borrowing, trading, and savings. It demonstrates how composability benefits development efficiency, security, and capital efficiency while boosting TVL by allowing users to leverage assets across multiple protocols simultaneously. The article provides practical guidance for building composable projects, including using established standards like SEP-0041, prioritizing modularity, and publishing reusable libraries. It concludes with real-world examples from the Stellar ecosystem such as Meru wallet integrating Blend, FxDAO using AQUA AMM pools, and OrbitCDP building on Blend pools.
