

Composable 🧩
50 posts

@composablepod
Biweekly show unpacking the tech behind crypto's building blocks 🧩 Hosted by @ellierdavidson & @alysiatech \\ Fueled by @espressosys


















Ever been curious about wrapped tokens? If so, @alysiatech & @ellierdavidson break them down in this episode of Composable. They explore their purpose, benefits, limitations, and how they differ from canonical tokens. Timestamped topics they cover: 00:19 - Let's first define canonical tokens 00:54 - USDC as an example of a canonical token 01:37 - Explanation of wrapped tokens 02:50 - Wrapped tokens for bridging 03:40 - Aave deposit example 04:06 - Wrapped BTC for DeFi 05:00 - Liquid staking and rewards 06:05 - L2 security inheritance debate 07:00 - Considerations for issuing canonical tokens 08:50 - ETH on L2s as wrapped tokens 10:35 - Different security models 11:10 - Fragmented liquidity 12:05 - Redemption difficulties 13:10 - The problem of minting permissions 14:40 - Canonical bridges vs. speed 15:25 - Finality considerations 16:15 - Confirmation approaches 18:30 - Solver networks 22:00 - The future of wrapped tokens 22:30 - Alysia & Ellie share their preference for canonical tokens 25:20 - Crosschain token standards 27:40 - Conclusion



