Cross-Contract Interaction

Cross-contract interaction refers to the process where one smart contract invokes the functions or data of another contract. This is the backbone of composability in DeFi, often called money legos.

While this allows for powerful financial applications, it also creates complex dependencies. If one contract in the chain has a vulnerability, it can impact all other protocols that rely on it.

Managing these interactions requires careful design to ensure that security assumptions are maintained across the entire ecosystem. It highlights the systemic risk inherent in highly interconnected financial protocols.