Ark Invest’s analysis suggests that the DeFi (Decentralized Finance) space is undergoing an "unbundling-rebundling" cycle similar to those seen in the SaaS and fintech industries. This process is driven by "composability"—the ability of different protocols to integrate and build upon one another like Lego bricks.The Unbundling Phase Early DeFi protocols like Uniswap and Aave emerged as vertical applications focused on singular functions such as trading or lending. Gradually, they became modul...

Ark Invest’s analysis suggests that the DeFi (Decentralized Finance) space is undergoing an "unbundling-rebundling" cycle similar to those seen in the SaaS and fintech industries. This process is driven by "composability"—the ability of different protocols to integrate and build upon one another like Lego bricks.The Unbundling Phase Early DeFi protocols like Uniswap and Aave emerged as vertical applications focused on singular functions such as trading or lending. Gradually, they became modul...