If there's one thing that separates decentralized finance from traditional finance, it's motion.

In traditional systems, assets are fixed. They sit in one account, serving one purpose. In DeFi, assets move. The same token can lend, stake, govern, and trade across multiple protocols at once. That fluidity is what we call composability: the ability of protocols to connect, share, and build on one another.

It's the single most powerful idea in DeFi. It's also one of its biggest risks.

What composability actually means

Composability simply means DeFi protocols are built like building blocks.

Each one can plug into another through open smart contracts, allowing one app's output to become another's input.

For example:

• You can restake ETH via Kelp to receive rsETH (a liquid restaking token).

• Then use that same rsETH as collateral on Aave to borrow WETH.

• Take that borrowed WETH and deposit it back into Kelp to mint more rsETH, creating a looping strategy that compounds your restaking rewards.

• Or skip the manual loop entirely and deposit into Gain's High Gain vault, which automates this entire strategy for you.

All of these happen through connected protocols. One token powers multiple layers of activity.

That's not a niche design choice. It's the foundation of the DeFi economy.

The real-world impact

According to DefiLlama, almost 50% of DeFi's $130B+ TVL now sits in protocols that depend on at least one other protocol for core functionality. That includes borrowing against LST/LRTs, routing trades through aggregators, or building vault strategies on top of lending markets.

That interdependence is the reason DeFi scales fast. When new protocols launch, they can build immediately on existing ones rather than starting from zero.

Composability also drives capital efficiency. Instead of idle assets sitting in wallets, users can deploy the same collateral across multiple earning layers.

That's how products like Gain vaults exist. They use composability to access multiple strategies (lending, restaking, and liquidity provision) within a single deposit flow.

A vault doesn't reinvent DeFi. It connects the best parts of it.

Why It Matters for Users

Efficiency: One token can perform multiple roles. Your capital never sits still.

Flexibility: You can move positions between protocols instantly, often without unwinding your base position.

Innovation: Developers can build faster because open-source contracts are interoperable. New products can launch by combining existing modules rather than writing everything from scratch.

Composability makes DeFi evolve like software: fast, modular, and iterative.

Composability with Kelp & Gain

Kelp & Gain’s tokens are designed to be composable.

When you restake ETH via Kelp, you receive rsETH. That rsETH can then be used across 50+ DeFi integrations. For example: as collateral on Aave or Morpho, in liquidity pools on Balancer or Uniswap, or on platforms like Pendle.

When you deposit rsETH or ETH into Gain vaults, you receive liquid receipt tokens (agETH for Airdrop Gain, hgETH for High Gain). These aren't locked positions. They're composable assets that represent your vault position.

You can deposit hgETH on Euler as collateral, provide liquidity with agETH on Balancer or trade them on Pendle for upfront rewards.

Your vault position keeps working in the background, earning rewards through its automated strategy. Meanwhile, the receipt token you hold unlocks additional use cases across other protocols.

That's composability at the token level. One deposit, multiple layers of utility.

The Bigger Picture

Composability isn't just a technical feature. It's a mindset.

It turns DeFi into an open network where new protocols can emerge by combining what already exists. Innovation in this space feels exponential because every connection multiplies what's possible.

For users, it means freedom.

For builders, it means velocity.

For the system, it means growth, if it's built on discipline instead of chaos.

So yes, in DeFi, one token really can be many things at once.

The same rsETH that earns restaking rewards can simultaneously serve as collateral, unlock borrowing power, and fuel automated vault strategies.

That's not poetry. That's what makes DeFi different.

Disclaimer: This is not financial advice. Always DYOR and understand the risks involved before depositing into any DeFi protocol.