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Composability, in the context of DeFi, refers to the ability of different protocols and smart contracts to seamlessly connect and interact with each other.It&#39;s like building with Lego blocks, where various pieces can snap together effortlessly to create something bigger, better, and more sophisticated. We&#39;re talking about different financial services and apps working together seamlessly to make DeFi even more rewarding!The Magic of InterconnectednessRather than siloed financial services, composability allows DeFi protocols to interoperate, giving users access to a broader range of services under one umbrella. Users can borrow, lend, trade, and invest without jumping around various websites or apps.This interconnectedness facilitates a more efficient and user-friendly experience, making it much easier for regular folks to get in on the DeFi action.Real-World Examples and Use Cases<ol><li>Automated Market Makers (AMMs): AMMs like Uniswap and SushiSwap are prime examples of composability. These decentralized exchanges leverage liquidity pools, allowing users to trade assets directly from their wallets without intermediaries. Also, other DeFi applications can integrate with AMMs to provide liquidity or build upon their pricing mechanisms.</li><li>Flash Loans: Aave, one of the leading DeFi lending protocols, introduced flash loans, a groundbreaking use case for composability. Flash loans enable users to borrow funds without collateral as long as the borrowed amount is returned within the same transaction. This innovation has led to the creation of various arbitrage and liquidation strategies, enhancing capital efficiency within DeFi.</li><li>Yield Farming and Staking: Yield farming platforms like Yearn Finance have embraced composability to optimize returns for users. By automatically moving funds between various DeFi protocols seeking the highest yield, Yearn Finance maximizes the potential of users&#39; assets without requiring them to navigate multiple platforms manually.</li></ol>Creating SynergiesComposability nurtures a fertile ground for synergistic collaborations among various projects. Developers can focus on specialized aspects of the DeFi ecosystem without needing to reinvent the wheel.This accelerates innovation, and users can benefit from cutting-edge features that combine the best of multiple protocols.Risk and ChallengesWhile composability brings numerous benefits, it&#39;s essential to recognize the potential risks and challenges. The interdependence of protocols can create complex interactions that may expose vulnerabilities. Hence, thorough audits and robust security measures become imperative to ensure the safety and trustworthiness of composability in DeFi.The Future AheadAs DeFi continues its upward trajectory, composability will undoubtedly play a pivotal role in shaping its future. We expect to witness even more sophisticated and interconnected financial products, empowering users with unparalleled flexibility and control over their assets.Want to Dive Deeper?To learn more about Composability in DeFi, head to our <a href="https://defi-planet.com/2022/11/composability-in-defi-how-to-maximize-earnings-with-a-defi-money-lego/" rel="noopener noreferrer nofollow">article</a> on DeFi Planet.Catch up on our published articles for the week!NEWS●  Alchemy Pay Partners with Checkout.com to Expand its Crypto-Fiat Payment Solutions&gt;&gt;&gt;<a href="https://defi-planet.com/2023/07/alchemy-pay-partners-with-checkout-com-to-expand-its-crypto-fiat-payment-solutions/" rel="noopener noreferrer nofollow"> Read more</a>.●  US Senate Passes 2024 NDAA with Landmark Cryptocurrency Regulation Measures&gt;&gt;&gt;<a href="https://defi-planet.com/2023/07/us-senate-passes-2024-ndaa-with-landmark-cryptocurrency-regulation-measures/" rel="noopener noreferrer nofollow"> Read more</a>.●  Kyrgyzstan President Approves Cryptocurrency Mining Project, Anticipates Favourable Economic Impact&gt;&gt;&gt;<a href="https://defi-planet.com/2023/07/kyrgyzstan-president-approves-cryptocurrency-mining-project-anticipates-favourable-economic-impact/" rel="noopener noreferrer nofollow"> Read more</a>.●  The Sandbox Partners with British Museum to Offer Immersive Historical Experiences to Users&gt;&gt;&gt;<a href="https://defi-planet.com/2023/07/the-sandbox-partners-with-british-museum-to-offer-immersive-historical-experiences-to-users/" rel="noopener noreferrer nofollow"> Read more</a>.●  Phoenix Technology Considers UAE IPO Amidst Crypto-Friendly Atmosphere&gt;&gt;&gt;<a href="https://defi-planet.com/2023/07/phoenix-technology-considers-uae-ipo-amidst-crypto-friendly-atmosphere/" rel="noopener noreferrer nofollow"> Read more</a>.●  Binance Counters CFTC Allegations with Motion to Dismiss, Cites Regulatory Overreach&gt;&gt;&gt;<a href="https://defi-planet.com/2023/07/chinas-cbdc-hits-major-milestone-records-over-250-billion-in-transactions/" rel="noopener noreferrer nofollow"> Read more</a>.●  Crypto.com Receives Regulatory Approval from Netherlands Central Bank&gt;&gt;&gt;<a href="https://defi-planet.com/2023/07/crypto-com-receives-regulatory-approval-from-netherlands-central-bank/" rel="noopener noreferrer nofollow"> Read more</a>.●  Goracle Goes Cross-chain, Tests Sport Data Feeds on Polygon&gt;&gt;&gt;<a href="https://defi-planet.com/2023/07/goracle-goes-cross-chain-tests-sport-data-feeds-on-polygon/" rel="noopener noreferrer nofollow"> Read more</a>.●   Archax Launches 24/7 Crypto Exchange Exclusively for Institutional Investors&gt;&gt;&gt;<a href="https://defi-planet.com/2023/07/archax-launches-24-7-crypto-exchange-exclusively-for-institutional-investors/" rel="noopener noreferrer nofollow"> Read more</a>.●   Smart Contract Surge: BNB Chain Leads with 46.5% Market Share in Q2 2023&gt;&gt;&gt;<a href="https://defi-planet.com/2023/07/smart-contract-surge-bnb-chain-leads-with-46-5-market-share-in-q2-2023/" rel="noopener noreferrer nofollow"> Read more</a>.●  Hong Kong and Saudi Arabia Sign MoU to Deepen Financial Cooperation&gt;&gt;&gt;<a href="https://defi-planet.com/2023/07/hong-kong-and-saudi-arabia-sign-mou-to-deepen-financial-cooperation/" rel="noopener noreferrer nofollow"> Read more</a>.●  Sam Altman Remains Optimistic About Worldcoin Token Launch Amidst Controversy and Waning Excitements &gt;&gt;&gt;<a href="https://defi-planet.com/2023/07/sam-altman-remains-optimistic-about-worldcoin-token-launch-amidst-controversy-and-waning-excitement/" rel="noopener noreferrer nofollow"> Read more</a>.●  Web3 Technology Set to Revolutionize Digital Marketing – Report&gt;&gt;&gt;<a href="https://defi-planet.com/2023/07/web3-technology-set-to-revolutionize-digital-marketing-report/" rel="noopener noreferrer nofollow"> Read more</a>.●  South Korea Sets Up Interagency Investigation Team to Combat Cryptocurrency Crimes and Protect Investors&gt;&gt;&gt;<a href="https://defi-planet.com/2023/07/south-korea-sets-up-interagency-investigation-team-to-combat-cryptocurrency-crimes-and-protect-investors/" rel="noopener noreferrer nofollow"> Read more</a>.●  Reddit Set to Launch ‘Retro Reimagined’ Collectible Avatars on Polygon Blockchain&gt;&gt;&gt;<a href="https://defi-planet.com/2023/07/reddit-set-to-launch-retro-reimagined-collectible-avatars-on-polygon-blockchain-2/" rel="noopener noreferrer nofollow"> Read more</a>.●  Binance Withdraws Cryptocurrency License Application in Germany Amid Regulatory Challenges&gt;&gt;&gt;<a href="https://defi-planet.com/2023/07/binance-withdraws-cryptocurrency-license-application-in-germany-amid-regulatory-challenges/" rel="noopener noreferrer nofollow"> Read more</a>.●  Singapore High Court Declares Cryptocurrencies as Property Eligible for Trust Holding&gt;&gt;&gt;<a href="https://defi-planet.com/2023/07/singapore-high-court-declares-cryptocurrencies-as-property-eligible-for-trust-holding/" rel="noopener noreferrer nofollow"> Read more</a>.●  Ripple’s Chief Legal Officer Dismisses SEC’s Appeal Concerns Following Landmark Decision&gt;&gt;&gt;<a href="https://defi-planet.com/2023/07/ripples-chief-legal-officer-dismisses-secs-appeal-concerns-following-landmark-decision/" rel="noopener noreferrer nofollow"> Read more</a>.●  OKX Releases 9th Monthly Proof-of-Reserve Report, Maintains a Sustained $11.3 Billion in Asset Holdings&gt;&gt;&gt;<a href="https://defi-planet.com/2023/07/okx-releases-9th-monthly-proof-of-reserve-report-maintains-a-sustained-11-3-billion-in-asset-holdings/" rel="noopener noreferrer nofollow"> Read more</a>.●  Matrixdock Integrates Chainlink’s Proof of Reserve to Enhance Transparency and Security for Tokenized Assets&gt;&gt;&gt;<a href="https://defi-planet.com/2023/07/matrixdock-integrates-chainlinks-proof-of-reserve-to-enhance-transparency-and-security-for-tokenized-assets/" rel="noopener noreferrer nofollow"> Read more</a>.●  UK Data Regulator to Investigate Worldcoin Over Privacy Concerns&gt;&gt;&gt;<a href="https://defi-planet.com/2023/07/uk-data-regulator-to-investigate-worldcoin-over-privacy-concerns/" rel="noopener noreferrer nofollow"> Read more</a>.●  Coinbase’s Chief Policy Officer Urges Australia to Swiftly Implement Cryptocurrency Regulations&gt;&gt;&gt;<a href="https://defi-planet.com/2023/07/coinbases-chief-policy-officer-urges-australia-to-swiftly-implement-cryptocurrency-regulations/" rel="noopener noreferrer nofollow"> Read more</a>.●  Crypto Game Publisher Treasure Successfully Contains Hack Impacting User Accounts&gt;&gt;&gt;<a href="https://defi-planet.com/2023/07/crypto-game-publisher-treasure-successfully-contains-hack-impacting-user-accounts/" rel="noopener noreferrer nofollow"> Read more</a>.●  Wyoming Seeks Head of Stable Token Commission for Stablecoin Project&gt;&gt;&gt;<a href="https://defi-planet.com/2023/07/wyoming-seeks-head-of-stable-token-commission-for-stablecoin-project/" rel="noopener noreferrer nofollow"> Read more</a>.●  Japanese Prime Minister Reaffirms Support for Web3 at WebX Conference in Tokyo&gt;&gt;&gt;<a href="https://defi-planet.com/2023/07/japanese-prime-minister-reaffirms-support-for-web3-at-webx-conference-in-tokyo/" rel="noopener noreferrer nofollow"> Read more</a>.●  Ethereum Co-Founder Raises Concerns Over Worldcoin’s Human Identity Verification Project&gt;&gt;&gt;<a href="https://defi-planet.com/2023/07/ethereum-co-founder-raises-concerns-over-worldcoins-human-identity-verification-project/" rel="noopener noreferrer nofollow"> Read more</a>.● South Korean Banks Research Tokenized Deposits as Viable Alternative to Stablecoins and CBDCs&gt;&gt;&gt;<a href="https://defi-planet.com/2023/07/south-korean-banks-research-tokenized-deposits-as-viable-alternative-to-stablecoins-and-cbdcs/" rel="noopener noreferrer nofollow"> Read more</a>.●  Growing Opposition to CBDCs: Congressman Davidson Calls for Legislation Against Their Creation&gt;&gt;&gt;<a href="https://defi-planet.com/2023/07/growing-opposition-to-cbdcs-congressman-davidson-calls-for-legislation-against-their-creation/" rel="noopener noreferrer nofollow"> Read more</a>.●  House Financial Services Committee to Review Bills for Legal Clarity in Digital Assets and Stablecoin Payment &gt;&gt;&gt;<a href="https://defi-planet.com/2023/07/house-financial-services-committee-to-review-bills-for-legal-clarity-in-digital-assets-and-stablecoin-payments/" rel="noopener noreferrer nofollow"> Read more</a>.●  Worldcoin Launches WLD Token &amp; World ID for Over Two Million Users &gt;&gt;&gt;<a href="https://defi-planet.com/2023/07/worldcoin-launches-wld-token-world-id-for-over-two-million-users/" rel="noopener noreferrer nofollow"> Read more</a>.ARTICLES● Canton Network: The First Privacy-Enabled Open Blockchain For Institutional Assets &gt;&gt;&gt;<a href="https://defi-planet.com/2023/07/canton-network-the-first-privacy-enabled-open-blockchain-for-institutional-assets/" rel="noopener noreferrer nofollow"> Learn more.</a>● What is Ethereum Account Abstraction? Everything You Need to Know &gt;&gt;&gt;<a href="https://defi-planet.com/2023/07/what-is-ethereum-account-abstraction-everything-you-need-to-know/" rel="noopener noreferrer nofollow"> Learn more.</a>● Ethereum 2.0: All You Need To Know About Ethereum’s Serenity Upgrade &gt;&gt;&gt;<a href="https://defi-planet.com/2021/08/ethereum-2-0-all-you-need-to-know-about-ethereum-s-serenity-upgrade/" rel="noopener noreferrer nofollow"> Learn more.</a>● What You Need to Know About The Sui Layer 1 Blockchain &gt;&gt;&gt;<a href="https://defi-planet.com/2022/12/what-you-need-to-know-about-the-sui-layer-1-blockchain/" rel="noopener noreferrer nofollow"> Learn more.</a>● From Fiat to Crypto and Back Again: Understanding On-Ramp and Off-Ramp Options in Crypto &gt;&gt;&gt;<a href="https://defi-planet.com/2023/01/from-fiat-to-crypto-and-back-again-understanding-on-ramp-and-off-ramp-options-in-crypto/" rel="noopener noreferrer nofollow"> Learn more.</a>● Blockchain in Healthcare: Pioneering Innovation for Improved Patient Outcomes &gt;&gt;&gt;<a href="https://defi-planet.com/2021/10/blockchain-in-healthcare-pioneering-innovation-for-improved-patient-outcomes/" rel="noopener noreferrer nofollow"> Learn more.</a>● 8 Types Of Blockchain Consensus Mechanisms You Should Know &gt;&gt;&gt;<a href="https://defi-planet.com/2021/08/8-types-of-blockchain-consensus-mechanisms-you-should-know/" rel="noopener noreferrer nofollow"> Learn more.</a><h4>ICYMI…</h4>Binance Moves to Dismiss CFTC Charges, Citing Lack of JurisdictionBinance has responded to charges filed by the U.S. Commodity Futures Trading Commission (CFTC) in March, seeking to dismiss the allegations based on two primary arguments:<ol><li>Lack of Personal Jurisdiction: Binance contends that the CFTC lacks personal jurisdiction over the foreign entities involved, including Binance Holdings Limited, Binance Holdings (IE) Limited, and Binance Holdings (Services) Limited. The exchange emphasizes that it does not operate in the U.S., and its CEO is not a U.S. resident.</li><li>Spot Trading Activities: Binance argues that the CFTC&#39;s charges are flawed since the agency lacks regulatory authority over spot trading activities, both domestically and internationally.</li></ol>Additionally, Binance addresses the CFTC&#39;s claim of willful evasion, stating that the application of this claim is inappropriate in a novel industry that did not exist or was not regulated at the time the relevant provisions were established in 2012.Spotlight on interesting projectsTezoro<a href="https://tezoro.io/" rel="noopener noreferrer nofollow">Tezoro</a> is a non-custodial service that allows you to reduce the risk of losing your crypto by ~100 times by creating a backup: a smart contract that can withdraw crypto from your wallet and transfer it to a backup address even if you&#39;ve already lost access to your wallet or died.Tezoro is a non-custodial service. It helps you to prepare your backup, and you confirm it via your MetaMask and deploy it directly to the blockchain.Nobody, including Tezoro, can change the amount or replace the backup address. The only thing you allow it to do is initiate the transfer at the moment you need it.For more information, visit <a href="https://tezoro.io/" rel="noopener noreferrer nofollow">https://tezoro.io/</a><img src="https://academy-public.coinmarketcap.com/optimized-uploads/a67c49fe07334e48816dc501586dec8a.jpeg" />If you want more content like this, visit <a href="https://defi-planet.com/" rel="noopener noreferrer nofollow">DeFi Planet</a> and follow us on <a href="https://twitter.com/PlanetDefi" rel="noopener noreferrer nofollow">Twitter</a>, <a href="https://www.linkedin.com/company/defi-planet/" rel="noopener noreferrer nofollow">LinkedIn</a>, <a href="https://www.facebook.com/DeFi-Planet-129907662611402" rel="noopener noreferrer nofollow">Facebook</a>, <a href="https://www.instagram.com/defi.planet/" rel="noopener noreferrer nofollow">Instagram</a>, <a href="https://medium.com/&#64;defi-planet" rel="noopener noreferrer nofollow">Medium</a>. and <a href="https://coinmarketcap.com/community/profile/DeFiPlanet/" rel="noopener noreferrer nofollow">CoinMarketCap Community</a>.

Weekly Round-Up #60 | Composability: The Swiss Army Knife of DeFi 🗡️ 💱

DeFi Planet

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