The technology delivers one thing, but the most important thing is the actual use cases that are being empowered and ultimately, the end consumers who are finding value out of it.”
@RajaChak75 on @Nasdaq's @TradeTalks last week with a reminder about what matters: building life-changing tools for actual people.
Composability in DeFi is more like building a hot rod...choosing parts from different makers to create something custom, powerful, and purpose-built. That’s what developers get when they build on open, interoperable protocols.
In DeFi, composability means different protocols and smart contracts can work together seamlessly. Lending, payments, AMMs, stablecoins - all of them can plug into each other, creating new possibilities without starting from scratch every time.
This unlocks real efficiency.
Developers can reuse well-tested components instead of reinventing the wheel. Projects can tap into shared liquidity and security. And users can do more with their assets: earn, borrow, and trade without leaving the ecosystem.
Here’s how that looks in practice:
A user adds liquidity to an AMM and receives LP tokens. They then use those LP tokens as collateral to take out a loan. One deposit, two active use cases - more utility, higher TVL, stronger network effects.
The Stellar smart contract platform was designed with composability in mind.
Early projects like @blend_capital, Meru, and Orbit CDP are already building on each other - integrating price feeds, vaults, and governance layers to create rich, interconnected DeFi experiences.
Composability is both a solid technical feature and a strategic advantage. More connections lead to more value, for builders and users alike. And on Stellar, that means every smart contract you launch is another building block for the next big idea.. (okay back to the block analogy)
Composability in DeFi is more like building a hot rod...choosing parts from different makers to create something custom, powerful, and purpose-built. That’s what developers get when they build on open, interoperable protocols.
In DeFi, composability means different protocols and smart contracts can work together seamlessly. Lending, payments, AMMs, stablecoins - all of them can plug into each other, creating new possibilities without starting from scratch every time.
This unlocks real efficiency.
Developers can reuse well-tested components instead of reinventing the wheel. Projects can tap into shared liquidity and security. And users can do more with their assets: earn, borrow, and trade without leaving the ecosystem.
Here’s how that looks in practice:
A user adds liquidity to an AMM and receives LP tokens. They then use those LP tokens as collateral to take out a loan. One deposit, two active use cases - more utility, higher TVL, stronger network effects.
The Stellar smart contract platform was designed with composability in mind. Early projects like @blend_capital, Meru, and Orbit CDP are already building on each other - integrating price feeds, vaults, and governance layers to create rich, interconnected DeFi experiences.
Composability is both a solid technical feature and a strategic advantage. More connections lead to more value, for builders and users alike. And on Stellar, that means every smart contract you launch is another building block for the next big idea.. (okay back to the block analogy)
“The Stellar Development Foundation’s inclusive approach and established connections with asset managers and TradFi institutions align perfectly with our vision for a more accessible and efficient financial future.”
—Societe Generale - Forge’s Chief Revenue Officer on tokenization on the Stellar network.
💭 Proof-of-Stake (PoS) chains like Ethereum & Solana rely on economic incentives. Stake tokens → earn rewards. Cheat → get slashed.But what if the reward for cheating is bigger than the punishment? More below.
In 2023, attackers spent ~$10K to become Ethereum validators. They exploited MEV-Boost to steal $25M in stablecoins. The block was valid. The network approved it. The exploit worked because PoS only verifies outputs, not how the block was built.
PoS assumes attackers are rational...motivated only by profit. But what if they’re not? State-level actors could sabotage a PoS chain to cause economic damage, even at a loss. PoS offers no defense against attackers who don’t care about money.
Why is this possible? Because in PoS, anyone with money can validate blocks - no identity or reputation required. Malicious actors can enter anonymously, exploit, and vanish. That’s the tradeoff when stake = access.
Stellar takes a different approach. Its Proof-of-Agreement (PoA) model is based on trust, not tokens. To become a validator, you need to be trusted by others. No trust? No influence. It’s staking reputation over coins.
PoA shuts the door on anonymous block producers, MEV abuse, and irrational attacks. It’s not perfect, but the Stellar approach offers something PoS can’t: Accountability.