Define “Composability” in the Context of Tokenized Finance

Composability, often called "money legos," is the ability of different decentralized finance (DeFi) protocols and tokens to seamlessly interact and build upon each other. Because all tokens adhere to common standards (like ERC-20), a token from one protocol can be easily used as collateral in a lending protocol, or traded on a decentralized exchange, enabling complex financial structures.