UNWRAPPING DEFI: THE EVOLUTION OF TOKENS, POOLS, AND VAULTS

Summary from the TLDR Crypto newsletter

DeFi has evolved through three phases – tokens, pools, and vaults – condensing centuries of traditional finance into more efficient onchain protocols where users capture yields traditionally reserved for banks and intermediaries. Stablecoins have progressed from fiat-backed to over-collateralized to delta-neutral models like Ethena's USDe at 101% collateralization with $12 billion market cap, demonstrating successful token flywheels where wrapper tokens stack yields across multiple protocols (USDe → sUSDe → PT-sUSDe → vault positions). Six pool types emerged sequentially – lending, trading, staking, incentivized gauges, strategy vaults, and structured finance – with modern vaults now managing strategies across these pools while curators take performance fees.