DeFi is the talk of the town and with good reason. Its potential is virtually unlimited, with new applications, use cases, and ideas springing up every day from the collective mind of all actors involved.
And that’s the beauty of it, really — its decentralized nature has transformed into a sandbox for the world’s brightest ideators and developers, an unprecedented space for development, experimentation, and trying out new concepts.
DeFi is a playground, and we’re still at the very beginning of exploring it. And while many of its core elements are well-known to the general public, there are those that aren’t talked about or, at least, not to the extent needed. One such thing is DeFi composability, and it’s a pretty big deal, yet largely unknown. So what is it and why should you care?
DeFi composability — the universal building blocks
Imagine for a second that web3 as an idea doesn’t exist and we’re firmly in the centralized realm of web2, where service providers and big tech companies fight for your attention, loyalty, and money. It’s not too hard to imagine — it’s pretty much where we are right now.
If we put the user in the center, then he is surrounded on all sides by corporations that crave him as their customer. They don’t want to share, they don’t want to let him go, so they keep coming up with new ideas and propositions to keep him loyal and keep him hooked, but only in their closed-off system that operates as a world of its own.
This is the nature of centralization — one organization tries to grab as big a piece of the pie as possible and then locks it in a vault. The services this organization offers are just what they are, they can’t be modified, changed, or rearranged, not without the central body’s sanction. These corporations are constantly in competition with one another. Everyone wants a bigger market share, so they keep trying to increase their own user base, which they then proceed to lock away from the others in closed-off systems.
Every new centralized service only increases the amount of existing networks that is cut off from the others and operates according to its own rules and regulations. But just how many applications can you have on your phone before you start losing track of everything, or just get tired of them? Does the internet really need to be that fragmented? Do services need to exist on a stand-alone basis and in isolation, or is there an…
Alternative?
So what if there weren’t many fragmented user bases? What if organizations and their services were not isolated into their own worlds and could instead talk to each other, work together, interact, and share a pool of resources, people, and ideas? What if things were open and connected, instead of closed-off walled gardens?
Enter composability. With composability, the key word is interoperability. This means that there isn’t a series of closed systems that play tug o’ war against each other, but a network of systems that exist in a state of cooperation and talk to each other over shared interests, so to speak.
DeFi composability enables economic systems to interact with each other and create synergies in order to improve outcome probability. Composability enables different apps, products, and services to communicate with each other, scaling their code and making them mutually beneficial to each other, thus creating a powerful synergy.
The best and most widely-used analogy is that of Lego bricks — various elements of DeFi, whether apps or services, click together in combinations to produce infinite diversity of outcome and unlock new possibilities. Everything is open, flexible, constantly flowing and evolving. One large system where solutions can be built on top of each other, providing new and exciting opportunities to users.
DeFi is the future. It’s also hard to get into…
In its current state, DeFi tends to be scattered, and composability has a long way to go. The crypto journey, in order to access DeFi’s most powerful elements, tends to be really complicated. Usually one must use several apps — exchanges, wallets, tools — just to buy a certain token and then tap into the powers of DeFi, be it staking, lending, or pooling, for example.
Buying at a CEX, transferring to a DEX, swapping, then moving the funds out to a non-custodial wallet, only to find it is short on functionality and you have to yet again switch, or make yet another wallet, or use yet another new platform. In the process users lose money to fees and commissions and, what’s worse — they lose time. With real DeFi composability, all of these steps would be done in a single app, and with a minimum amount of clicks.
➡️Crypto is here.
➡️DeFi is here.
➡️Banking is way over here.
But what if it all looked like this: DeFi ↔ ️Crypto ↔️️ ️Banking.
Next-gen DeFi composability
This is why the ChangeX concept was formed. ChangeX aims to offer a mobile-friendly app interface that will tap into the many faces of modern finance. If blockchain’s complex and interoperable system is the back-end of the future of finance, then ChangeX is the front-end, the keys to unlock everything, make sense of it, and make it accessible.
Non-tech savvy individuals will be able to take advantage of non-custodial industry-leading products such as cross-chain bridges, staking on multiple chains, lending, DAOs, collateralized staking, and more, in easy to use Lego-like combinations that aim to provide the best possible outcome for their assets at minimal risk. But true composability needs more.
In order to truly act as one universal language used between worlds, ChangeX will also incorporate traditional finance into the app. Thus, our non-custodial wallet, which will serve to store and maximize the impact of your cryptocurrencies and tokens, will also serve as your personal bank account. The wallet will come with a personal IBAN number, SEPA functionality, and a Crypto Visa Card, enabling you to spend your crypto in the real world.
With this fiat ramp, one app is all you’ll need — ChangeX will serve to store fiat funds, allowing users to make not only crypto-related purchases and payments, but also pay for services, while unlocking DeFi’s most powerful tools to really make the most of inflationary Proof-of-Stake assets.
DeFi, crypto, banking — true composability is only possible when everything is included into one package. At ChangeX, that’s exactly what we want to achieve.
Read on in our whitepaper.
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Thanks for reading,
The ChangeX team
