Why Kraken Is Betting Big on Onchain Vaults | John Zettler & Sun Raghupathi

The discussion centers on the growth and evolution of onchain vaults within the DeFi landscape, projecting significant expansion and mainstream adoption. It highlights vaults as a user-friendly layer atop DeFi, enabling institutions to offer packaged yield products with customized risk controls and compliance. The conversation traces the evolution from early DeFi protocols like Aave and Compound to more modular systems like Morpho and VEDA, emphasizing the importance of multi-chain and multi-protocol flexibility. Revenue models are explored, noting the distribution partners capture the largest share. It differentiates DeFi's transparent, non-custodial approach from the failures of centralized entities like BlockFi and Celsius. The discussion also touches on the convergence of DeFi and traditional finance, with traditional asset managers entering the vault space.