The Role of Money Legos DeFi: Demystifying Composability and How Money Legos are Created

With the advent of decentralized finance (DeFi) as we now call it, the crypto space is revolutionizing. We can look forward to more opportunities to make the wild west of decentralized finance and swaps function with optimism. To work with a way-ahead approach we can put new DeFi protocols into function. With the help of Money Legos DeFi protocols, we can make transitional changes to the crypto functionality and rewards.

The salient benefits associated with DeFi protocols are to transfer value, advance loans, and add ample liquidity to the market. As the money legos defi system expands, with time we will see more innovations surfacing. And this is all possible with the help of smart contracts. With open source as the backbone of blockchain, anyone can create their contracts. With open source, you can integrate your own components into the protocol. As a developer, you can create your own applications with the help of smart contracts. These smart contracts would turn in applications, and you can run them interchangeably.

What are Money Legos?

As the name implies the concept is built around the arrangement and alignment of blocks. Just like Lego blocks, you can add as many blocks as possible or systems into your own block. This comes with endless possibilities and shapes. You can curate and create endless possibilities for a system you want to introduce based on your protocol. With money legos, the dimensions of the solutions are multiple and require less work and a dedicated protocol.

As the popular toy legos are attached to each other and even detached, you can do the same with your protocol. With each emerging technology, you can transform your money legos into a serving protocol. Unlike CeFi, where the solutions work as a standalone product, the solution is a major mix of multiple products. With money legos, you can create integration and composition to the protocol.

The number of services you increase can result in an increase in your money legos. The major functions of money legos are to compose and maintain their services intact. The process is termed composability. Combining different Lego blocks can result in a fully integrated solution-oriented brand-new protocol.

To understand things in greater depth, we must integrate and combine legos. Each block or lego has a specific function. Let us say each function serves a specific purpose. If it is borrowing, lending, staking, or yielding legos, all these legos can be joined in one. Developers can stack multiple protocols together to make one solid protocol. You can also stack multiple protocols such as using AAVE, Compound, Yearn, Curve, or Synthetix. Merging all can result in a completely new protocol. The resultant set of protocols is jointly referred to as a Lego Set.

What Legos are Worth Money?

With money legos defi you can take full advantage of borrowing and auto-generating loan payments. With specific types of legos, you can interoperate your payments. The process is simple and takes no time to do any hassle work. As you autopilot your payments for the loan, you can get a chance to earn as well. The possibilities are endless with defi money legos. Let us look at how it works.

•  Putting up collateral with Aave
•  Stake half loaned amount on Curve Finance
•  Trade the remaining half on Uniswap
•  Withdraw both the amounts from the above 2 protocols and exit at the same time

· Pay back the Aave loan amount

With money legos, you can channel your assets the way you want. And simultaneously you can make things work in your favor and earn as you like. The canvas of creativity is large, and you can have your experimented version of earning as your passive income.

With money legos, the composability functions best. By composability, we refer to the process of auto-generation and the addition of more blocks to your legos. In short, we optimize the processes and make the best money lego unit.

The same legos can be placed with other functions and different dimensions can be added. One such protocol is Alchemix. It provides deposits in DAI, and you receive up to half the amount in USD. You can withdraw all your USD, further spend it, and redeposit for additional yield. Then you leave your original deposit in the vault and further advance to other protocols for regenerating loans. Whether you are using a simple hybrid exchange, all such platforms are equipped and support money legos for defi. Alchemix protocol provides free loans and there is an instant and auto repayment system.

From a composability point of view, you can use money legos for free. And composability suits best with the same chain protocols. As cross-chain interoperability is still a work in process, but Polkadot is working on this. So, we might see cross-chain interoperability in the future.

Exchanges such as Binance, Huobi Global, and Bitflex are keen to introduce you to the emerging money legos. Where you can be part of a tokenized economy. Staking your assets in successful money legos can be worthwhile. When we answer the question of what legos are worth money, we have some promising money legos protocols.

• Maker DAO – Minting-based protocol backed up by stablecoins
• Compound -- A crypto lending and saving platform
• Aave – Collateralized crypto lending platform with instant flash loans
• Synthetix- Decentralized platform of derivatives to mint USD based stablecoins
• Curve- Yield and exchange your stablecoins on this platform
• Yearn- Create crypto savings with advance DeFi strategies
• RenVM- Multichain platform famous for bridging BTC to DeFi
• Sushi- A decentralized exchange for yield farming and earning lucrative returns
• Polygon- DeFi applications-based platform supported with Ethereum