Exposure Tokenization Is Already a Billion-Dollar DeFi Primitive DeFi used to tokenize assets. Now, it is doing something even more powerful: Tokenizing each layer of financial exposure embedded within an asset ↴↴↴ --- @pendle_fi currently holds around $1.27B in TVL, with roughly $629K in fees over the past 30 days. A yield-bearing asset can be split into PT + YT, turning principal and future yield into two separate markets. @strata_markets splits a yield strategy into Senior + Junior tranches. With srUSDe, Strata previously stated that the Junior tranche provides around 30% additional risk coverage for Senior, effectively turning risk itself into an exposure that can be priced separately. @roycoprotocol also structures a yield source into Senior + Junior tranches. Junior acts as first-loss capital and receives a risk premium from Senior. In other words, DeFi is beginning to build fully onchain capital structures. @TheRiskProtocol takes this even further: 1 BTC or 1 ETH → 1 RiskOFF + 1 RiskON. Together, the two tokens still represent the value of the underlying, but RiskOFF takes on lower exposure while RiskON can reach roughly 2× exposure outside the strike range under the current design. @covenantFi splits a base asset into Yield Coin + Leverage Coin, one side represents debt/yield exposure, while the other takes leveraged exposure to the underlying. --- 1 Asset → Multiple Exposures → Multiple Tokens → Multiple Markets. DeFi does not need thousands of new assets to keep expanding. It can create thousands of financial products from the assets that already exist. ⤷ RWA brings assets onchain. Exposure Tokenization turns each asset into a financial system.