Read a DeFi position as a chain of dependencies
One balance can depend on more than one protocol staying functional.
The mechanism
A position may combine a token issuer, lending market, oracle, bridge and interface. Composability makes new applications possible, but the user-facing product can conceal this dependency chain. Evaluating only the final application name leaves important questions unanswered.
Put it into practice
Use a dependency map rather than a list of logos. Starting from the asset you hold, identify the path back to the asset you expect to redeem. At each step, write down who can pause or change it and what information it depends on. This is a research method, not a claim that every dependency will fail. The purpose is to make assumptions visible before a disruption makes them urgent.
Keep the evidence in view.
ethereum.org — source & further reading ↗Checked for this edition on 7 October 2026. Examples are illustrative unless stated otherwise. Read our editorial standards.
Another angle.
Liquidity has a location on the price curve
Why the headline value in a pool can conceal where trading depth actually sits.
A price feed needs a clock
An accurate observation can become unsuitable when conditions move.