Unwrapping DeFi: The Evolution of Tokens, Pools, and Vaults

DeFi has evolved across crypto cycles by condensing traditional finance into onchain protocols built from tokens, pools, and vaults, and understanding any token means tracing the wrappers built on top of it. Ethena's USDe, with a $12bn market cap as of 2025/10/22, serves as an example, since staking it, splitting it on Pendle, and depositing into Morpho markets and vaults create extended wrappers. The article says delta-neutral strategies like Ethena operate at about 101% collateralization, versus about 270% for Dai. Aave and Compound launched pooled money markets in 2019, and trading pools earn fees of 0.05% to 1% of volume.