Composable Finance: Building a Fully Interoperable DeFi Ecosystem

The lack of interoperability between blockchain networks has been one of the major hindrances to true decentralization and the advancement of the blockchain space.

To solve this problem, Composable Finance is building an advanced tech stack for the DeFi ecosystem that will allow blockchain networks to communicate and share data freely.

What is Composable Finance?

Composable Finance is a decentralized finance (DeFi) cross-chain and cross-layer interoperability platform designed to make more DeFi protocols interoperable. The project seeks to eliminate the lack of cohesion and fragmented liquidity siloes across different blockchains that are currently besieging the DeFi ecosystem.

Composable is crafting “The face of DeFi’s future” and has worked toward achieving its vision of providing scalable cross-chain functionalities for DeFi protocols. It plans to achieve this goal using a suite of innovative, next-gen solutions.

Composable recently won Polkadot’s 8th parachain slot, where it raised more than $150 million from the over 6 million DOT contributions made by supporters from different parts of the world.

In November 2021, the project also secured Kusama’s 12th parachain auction with a $45 million fundraiser (115,071 KSM at the time) from supporters.

Composable Finance Core Features

Composable boasts a modular technical stack that consists of various layers and parachains that work together to improve the platform’s efficiency. Here are some of the core features:

• Composable Cross-chain Virtual Machine (Composable XCVM)

The Composable XCVM is a single, developer-friendly interface designed to interact and set up smart contract functions across several available Layer1 and Layer2 blockchain networks. It serves to eliminate the complexities involved in initiating call-backs into smart contracts, sending data to the routing layer, and many more.

The project is creating a wide range of innovative tools for the XCVM that allows developers to seamlessly orchestrate interactions with various chains while ensuring high uptime and transaction scalability.

Mosaic is a transfer availability layer capable of carrying out cross-chain and cross-layer interactions across several blockchains. This is designed to ensure a seamless transfer of information and liquidity, irrespective of the underlying L1 or L2 blockchain.

Thanks to Mosaic, users can freely move their digital assets and not face the lack of liquidity maximization typically experienced with other protocols. It ensures that liquidity is transferred to areas where it is needed.

Composable Finance has also built Mural, a cross-chain NFT bridge. Mural leverages Mosaic’s chain and layer agnostic bridging solution to enable a future for NFTs that exists beyond a single chain, where users can freely mint, purchase and rent NFTs from any marketplace or metaverse, unlocking their true potential.

• Parachains

Composable Finance is launching parachains on the DotSama networks, a combination of the Polkadot and Kusama ecosystems, to boost network security and prevent censorship. Picasso is a custom-built L1 blockchain on Kusama that will serve as the cross-chain hub for DeFi primitives. The Composable parachain is planned to launch in Q2 2022.

The Picasso parachain serves as the underlying infrastructure and finality layer. It offers enhanced interoperability, customization, and security over traditional blockchain structures. Picasso will feature a holistic environment where protocols prosper through cross-chain communication, further realizing Composable Finance’s vision of absolute blockchain agnosticism.

The Composable Labs

Composable Labs is the protocol’s resource and incubation arm dedicated to boosting innovation within the Composable ecosystem. It encourages developers and supports other teams to build on Composable’s infrastructure. Furthermore, projects can thrive from Composable Finance’s Mosaic or Mural by leveraging the Composable SDK, and the team from the Labs are actively assisting these procedures.

Composable Labs provides technical resources and incubation grants to support projects utilizing the protocol’s ecosystem and tools. Upon the conclusion of these milestones, it introduced these projects to VCs and thought leaders within the space, affording them excellent networking opportunities.

Strengthening Relationships

Since its inception, Composable Finance has established several notable partnerships with some of the biggest names in the blockchain space, including Multichain, Connext, Hop Protocol, RMRK, and more.

The project is fully committed to pushing forward with its vision for building a fully interoperable ecosystem of DeFi protocols and decentralized applications (dApps) with unprecedented cross-chain functionalities.