Composability Risk is the (additional and often exponential) risk resulting in stacking DeFi protocols.
DeFi apps are highly composable since they can work easily with each other with a high degree of interoperability.
The idea is great since you can seemingly combine multiple smart contracts and create endless permutations and combinations.
However, this can be really risky. An attack on one app could result in a series of collapsing dominos which could result in devastating hacks.
Categories: Hackers & Tech Stuff, Tradfi & Defi
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