.@3f_xyz is a sleeping giant I'm guessing 10 RWAs and $500M leverage capacity this time next summer

Vaults emerged as DeFi’s preferred vehicle of capital formation, ripping from $3B at the start of 2025 to $18B to date largely on the back of @Morpho with strong additions from @veda_labs , @ConcreteXYZ, @upshift_fi, @mellowprotocol, @lagoon_finance, and @EmberProtocol. The next step-change in vault TVL growth is the evolution of onchain balance sheets and a transition towards holistic portfolio management. Most RWA vaults today offer single-name leveraged exposure, which is great to deliver a singular product to market enabling other allocators to craft their own portfolios with it. A layer above that, groups like @Bitwise are offering professionally-managed portfolio-style vaults holding various RWAs, which is ultimately where @O2Ocapital sees the majority of onchain asset management moving as vaults grow to $100B these next 2 years and RWAs account for half of that. The vault landscape will look very much like ETFs. Single-name assets are 1) delivered by issuers, 2) enhanced by DeFi curators, and 3) aggregated by onchain portfolio managers. Step 3 is the de facto distribution layer akin to being included in an index or an ETF (which is everyone's goal!). The key: RWAs need to be delivered in a DeFi-composable manner to be included in that portfolio manager universe - that's where you see the real differentiation between a simple tokenized asset and a product with an ecosystem around it. This will be more pertinent than ever as issuers vie to capture the anticipated $1T+ stablecoin flows post-GENIUS Act January 2027. Deeper dive on this coming next week 💯