Composable Finance: The Face of DeFi’s Future

The future we are crafting is fully interoperable by its design and seamless in utility.

A natural evolution in a cross-chain world entails developers and users interacting seamlessly regardless of where their assets lie. That’s why our team at Composable Finance, are on a mission to build a fully interoperable future capable of offering developers and end-users alike seamless user experience and utility.

Our vision of hyper liquidity and composability abstract the underlying technology into a single interface, unlocking the potential for new primitives to be developed at an unprecedented pace. With Composable Finance, we believe that creativity, communication, and community will be reimagined and reconciled for a more inclusive and composable future.

We are doing this through a multifaceted approach where we begin by bridging gaps between today’s isolated blockchains and layer 2 scaling solutions, to create a single and unified access point that we are calling the Innovation Availability Layer (IAL), based on our Parachain offering. The IAL communicates with our powerful new virtual machine — Composable Cross-Chain VM (XCVM) — that serves to orchestrate and compute smart contract functions across the array of layer 1 and layer 2 networks autonomously, with the sole purpose of optimizing for best execution and mitigating all user experience constraints for developers and end-users.

On our quest to supplant new interoperability and development standards across Web3 and DeFi, we have recently launched an incubation arm, Composable Labs. Through this initiative, one of our key objectives is to develop and deploy a novel set of financial applications in a bid to prototype the suite of new tools and technologies we are building. Serving to highlight the technical and UX benefits Composable offers to applications built atop, we believe our in-house incubation efforts will inspire new and existing crypto developers and ignite a Cambrian explosion of Composable Finance-powered technologies and applications.

Next generation DeFi applications require robust cross-chain and cross-layer infrastructure including an array of intuitive developer tools and a vibrant decentralized community. Our core consists of cutting-edge solutions that allow builders to seamlessly build and deploy decentralised applications capable of being deployed across one or several layer 1 or layer 2 infrastructure.

DeFi’s Tomorrow, Today.

DeFi is still flourishing. Many top DeFi protocols are still seeing an influx of users and high total value locked (TVL), while stable coins in circulation are at an all-time high. However, the industry is siloed and fragmented, and scaling the industry is further perpetuating the fragmentations as projects explore L2s and other L1 networks to launch. Current interoperability solutions for cross-layer and cross-chain communication and value transfer are lacking in number and efficiency. Yet, all DeFi participants need infrastructure to build and use the most cost-effective and performant applications.

Resultantly, in the race for market share and users, two key functionalities are becoming the most important components for remaining competitive in the quickly evolving landscape: capital efficiency and interoperability.

In this manner, Composable Finance is embarking on a vast and growing opportunity in architecting and building infrastructure that allow developers to deploy applications capable of interoperating across layers and chains autonomously.

We believe technological advancements in this growing domain will create its own and new opportunities to build new innovative protocols and applications which previously were not possible. It further produces compounding value and a network effect for the projects that solve these challenges adequately.

Simplicity at our core, our guiding principle

Unnecessary complexity in many cases causes end-user friction and barricades developers from either expanding innovation or accessing it. To this end, we believe that sophisticated infrastructures must be rooted in simple and easy to use interfaces to propel efficiency and enable builders to ship confidently and faster. That is why at Composable Finance ‘simplicity’ is engrained in the DNA of our technologies and development ethos. Our purpose is to ensure pioneers get the most out of our whole host of products in the Composable ecosystem, and thus create exceptional experiences for the end user.

Upon the launch of our technology, our team and community of developers are committed to furthering the Composable tech stack through continual upgrades to user experience, exploring and attacking new opportunities to strive to push DeFi towards ultimate ubiquity.

Our Composable Tech Stack

To accomplish our mission, we are creating an inter-ecosystem communication protocol and virtual machine bolstered by the Innovation Availability Layer (IAL). The IAL will ultimately serve as a new and powerful fabric that can orchestrate and compute smart contract functions across a multitude of L1 and L2 technologies seamlessly and without compromising security. With this capability, an action such as borrowing X against Y can be routed through an ecosystem-agnostic path, maximizing for users’ preferred outcomes and parameters. The applications of such a stack are limitless.

Our current technical stack consists of:

  1. Composable XCVM

The XCVM is a single, developer friendly interface to interact orchestrate smart contract functions across the multitude of L1 and L2 networks available. In short, the XCVM serves to abstract complexity from the process of having to send instructions to the routing layer directly, initiate call-backs into smart contracts, and more.

Utilizing the IAL infrastructure, we are creating a set of tools for the Composable Cross-Chain Virtual Machine that developers can use to tap into various functions of communication and liquidity availability. The result is multifaceted; users can perform cross-chain actions, and the overarching blockchain ecosystem is repositioned as a network of agnostic liquidity and available yield.

Throughout this experience, Composable allows users to tailor their experience to maximize for a desired parameter while minimizing ecosystem-specific decision making.

2. The Routing Layer

The Routing Layer will assess all of the possibilities for a given action such as taking a loan of USDC, across all possible layers and chains, and makes an optimised pathway for a user. Upon selecting the appropriate pathway, the routing layer communicates this instruction to Mosaic for execution. This layer will be crypto-economically secured via our parachain, with incentives provided for actors to properly select the best routes for user actions.

To learn more about the Routing Layer and how it interacts with Composable XCVM check out 0xBrainjar’s article on our technical vision here.

3. Picasso Parachain

To ensure censorship resistance and network security across the IAL technical stack, Composable is launching its own Parachain on Kusama and Polkadot to underpin the entire ecosystem, acting as a finality and infrastructure layer.

Our cornerstone for the Picasso parachain is that through collaboration we will be able to create the strongest foundation layer. As the foundation layer develops through additional substrate palettes, the ecosystem as a whole evolves with efficiency and enables further innovation, the building blocks for developers to create applications along the chain whilst enabling higher order functions.

Each pallet is designed for different DeFi functionalities needed to build the ecosystem. Composable’s end goal is for in-house and project/developer-built pallets to cover all major components of DeFi, including primitives, core/secondary functions, and application/tertiary infrastructures.

The initial primitives we’ve built within this foundational fabric are necessary in order to enable and empower cutting-edge infrastructure.

Apollo: An MEV-resistant oracle that is embedded directly into the runtime of the chain.

Cubic: A vaults pallet — which introduces the paradigm of vaults similar to Ethereum.

Angular: A lending protocol built in collaboration with HydraDX that allows for isolated lending pairs for leverage on any asset in the Kusama ecosystem.

We have additional pallets planned that will enable further primitives, as well as several key components to enable Composable XCVM.

4. Mosaic

Mosaic serves as the asset transferal layer for all cross-chain and cross-layer interactions. It ensures liquidity is moving to the locations where it is needed, allowing the propagation of whatever instructions are required to satisfy the user’s desired outcome, as specified above.

Today, Mosaic is successfully integrated with the Ethereum mainnet, a number of scaling and layer 2 solutions (Arbitrium, Avalanche C-Chain, Polygon, and Fantom), as well as Moonriver, a Kusama project which allows us a connection to the Polkadot ecosystem. Tomorrow, we will connect all major DeFi ecosystems (including pioneering ecosystems such as Cosmos and Dotsama), allowing for total flexibility and unity in the industry.

We have designed Mosaic by viewing liquidity as complete, and not loyal. Liquidity flows based on fees, speed, and other tangibles. As a result, we’ve architected a synergistic relationship between passive and active liquidity providers, resulting in Mosaic being an optimized liquidity directing system for the purposes of facilitating cross-chain/layer transactions. Simply, we want users to move their assets freely and not see fickle obstacles such as liquidity maximisation problems which are presented by other competitor protocols.

And we are just getting started…

  • Picasso Token: The Picasso token is central to our infrastructure. It governs the Picasso parachain, which, as our foundational infrastructure, can be seen as governing the broader Composable ecosystem. This token will only be on Kusama, and will be related to LAYR.

The Holistic Solution for DeFi Developers:

We support the growth of our ecosystem through knowledge sharing, grants and incubation.

  • Composable Labs : Through our incubation arm we have been supporting the development of exciting new pallets on our Picasso Parachain. We believe that these new primitives will serve to enable higher order infrastructure.

0xbrainjar

BrainJar is our head of product and also the anchor that ties together the complex thinking, deep understanding and technical expertise demanded of our ambitious goal to make DeFi readily accessible to all innovations and truly arrive at interoperability.

0xBrainJar is a representation of our deep commitment to intellectual intrigue and rationale, whilst inviting developers and innovators to access a wealth of knowledge presented through the 0xBrainJar archive and dig as deep as possible into our complex and sophisticated infrastructure. As of late, DeFi and blockchain projects have made flippant claims and we believe it’s imperative to back up our goals with the technical evidence, as presented by 0xBrainJar.

Think of 0xBrainJar as the professor with an open door, at your fingertips to respond to your technical queries on twitter but publishing papers that are radically challenging and changing the way we operate and how DeFi will be thought of.

Check out 0xBrainJar’s article unpacking the technical infrastructure and how our ecosystem works in synergy:

https://0xbrainjar.medium.com/our-vision-for-composable-finance-ab6518d7e617

Build an accessible seamless future.

We’ve been working on perfecting our ecosystem, our vision and ensuring that we are leading the way in terms of innovation and accessibility for DeFi. Through our collective vision, our suite of bespoke offerings and products, we aim to embed collaboration where competition has been. Retreating back to the values of decentralism we are passionate to invite, collaborate and work with other projects and investors who reconcile in our vision.

The future we are building needs everyone to play a part, reach out to our team for informal or formal enquiries — and see how we can help you and more importantly how you can help us as we build tomorrow, today.

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The face of DeFi's future.