In this discussion, let's explore the concept of modular protocols and primitives in the DeFi (Decentralized Finance) space. The proposed definition of a primitive suggested that a contract should have zero external dependencies, limiting risks associated with governance, upgradeability, and oracles. While few existing protocols meet this definition, the success of protocols like Uniswap demonstrated the benefits of simplicity and security. For lending protocols that require oracles, the suggestion was to externalize the oracles, allowing the core protocol to focus on its primary function while relying on trusted external data sources. The participants highlighted the advantages of composability and the need for collaboration and standardization in order to realize the potential of building on solid foundations. Overall, the discussion shed light on the importance of security, simplicity, and modularity in the evolving DeFi ecosystem.
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