![]() Developers don’t need to build every tool they need before putting them together to build their desired protocol, as these tools already exist in the form of money Legos. ![]() Money Legos remove a lot of the time and complications around building a new financial application. This protocol will be built on the blockchain and run by a smart contract. These Lego blocks are built for borrowing, staking, or lending assets, among other things, and can be put together to create a single multi-functional financial application, hence the term “money Legos.” Once the developer has selected the money Legos needed to create their project, they can be pushed together, like Lego blocks, to create a new protocol. The way to bypass these complications, then, is to integrate the elements required into one protocol, thereby building a new protocol that can carry out all the actions needed in one place.ĭecentralized Finance (DeFi) Legos are building blocks, each with its own functionality, that can be integrated together to build one protocol with multiple functions. This in turn can mean increased fees - one for each transaction - and increased time requirements for each action on each protocol. This means that new financial opportunities are continuously developing in the DeFi space, but it can also mean having to go through many layers and protocols to achieve a result. When and How Have Money Legos Been Used To Create Successful DeFi Protocols?ĭecentralized finance ( DeFi) is becoming highly complex, with the constant creation of new protocols and DApps with varying functionalities.
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