# Composable Yield Tokens

DeFi strength lies in its composability—the ability to interconnect various protocols and applications seamlessly. Users of a CPMM can deposit their LP tokens into a farm to earn more yield or into a lending protocol to unlock more liquidity. However, concentrated liquidity positions in CLMM suffer from limited composability due to their representation as NFTs.

Rivera Vaults make concentrated liquidity composable, effectively transforming LP range positions into fungible ERC-20 tokens. This standardization streamlines the management of liquidity positions and unlocks their true potential within the broader DeFi ecosystem. The fungible ERC-20 tokens derived from Rivera Vaults can be seamlessly utilized across various DeFi protocols such as using them as collateral to mint stablecoins.&#x20;

The ERC-4626-based Rivera vaults allow developers to build powerful DeFi products on top of the concentrated liquidity positions. The newfound composability brings exciting opportunities to create innovative solutions on CLMM LP pools. Developers can build delta-neutral mining, interest rate swap, options products, and more that benefit the entire ecosystem.


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