Types of tokens

Native tokens

Every blockchain has its own native token — the currency used to pay for transactions on that network. Think of it as the network's own money.

Native tokens have intrinsic demand — anyone who wants to use the network needs them to pay fees. This is different from other tokens whose value depends on a specific service or promise.

Stablecoins

Tokens designed to maintain a fixed value, usually $1 USD. They're the "cash" of crypto — used for savings, payments, and as a safe haven during market volatility.

There are several types with very different risk profiles: fiat-backed (USDC, USDT), crypto-backed (DAI, BOLD), and yield-bearing (sDAI, sUSDe, USDY).

Wrapped tokens

A wrapped token is a token that represents another token, usually for technical compatibility reasons. The original token is "wrapped" — locked in a smart contract — and a new version is issued that works in a different context.

Why wrapping exists

Not all tokens work everywhere. ETH, for example, is Ethereum's native token, but many DeFi smart contracts use a standard called ERC-20. So ETH gets wrapped into WETH (Wrapped ETH) to be compatible. WETH is always worth exactly 1 ETH — it's the same asset in a different technical format.

Cross-chain wrappers

Wrapping is also used to bring tokens from one blockchain to another:

• WBTC (Wrapped Bitcoin) — BTC locked in a custodian's vault, with WBTC issued on Ethereum. Lets you use Bitcoin in Ethereum's DeFi ecosystem.
• Bridged tokens — When you bridge USDC from Ethereum to Arbitrum, the original USDC is locked and a bridged version is created on Arbitrum.

Liquid staking tokens as wrappers

Liquid staking tokens are a special case. When you stake ETH through Lido, you receive stETH — a token that represents your staked ETH plus accumulated rewards. It's a wrapper, but one that grows in value over time:

• stETH — Rebasing token: your balance increases daily as rewards accrue
• wstETH — Wrapped stETH: your balance stays the same, but each token is worth more over time
• rETH (Rocket Pool) — Like wstETH, increases in value relative to ETH
• JitoSOL, mSOL — Same concept for Solana staking

What is "underlying exposure"?

This is one of the most important concepts for understanding your real portfolio. Your underlying exposure is what you're actually betting on, regardless of which token you hold or on which network.

Example: You hold wstETH on Arbitrum, stETH on Ethereum, and cbETH on Base. Three different tokens, on three different networks. But your underlying exposure is the same in all three cases: ETH.

Why does this matter? Because if you think you're diversified across 15 different tokens, but 12 of them are wrapped or staked versions of ETH, your actual portfolio is highly concentrated in one asset.

LP tokens (Liquidity Provider tokens)

When you deposit tokens into a liquidity pool, you receive an LP token in return — a receipt that represents your share of the pool.

For example, if you deposit ETH and USDC into a Uniswap pool, you receive a Uniswap LP token. This token:

• Represents your share of the total pool
• Entitles you to a proportional share of trading fees
• Can be redeemed to withdraw your deposited tokens
• Can sometimes be deposited into other services for additional yield (this is called "yield farming")

LP tokens are not simple to value — their worth depends on the prices of both underlying tokens, the fees earned, and any impermanent loss. CleanSky calculates this for you, showing the actual value and composition of each LP position.

Governance tokens

Governance tokens give holders the right to vote on how a protocol is run — similar to shares in a company that come with voting rights.

Some governance tokens also accrue value from the protocol's fees (like CRV holders who earn trading fees from Curve). Others are purely for voting with no direct cash flow — similar to non-dividend shares.

Locked governance tokens

Some protocols incentivize long-term commitment by letting you lock governance tokens for extended periods in exchange for more voting power and rewards. For example, locking CRV for 4 years gives you veCRV — more voting power and a share of protocol fees. These locked positions are illiquid: you can't withdraw until the lock period ends.

Receipt and vault tokens

When you deposit tokens into a DeFi service, you typically receive a receipt token that represents your deposit:

• aUSDC — Your USDC deposited in Aave. Balance increases as interest accrues.
• cUSDC — Your USDC in Compound. Exchange rate against USDC increases over time.
• yvUSDC — Your USDC in a Yearn vault. Represents your share of the vault's strategy.

These tokens are technically worth more than the same amount of the base token, because they include accrued interest. CleanSky shows you the actual value, not just the token count.

RWA tokens (Real World Assets)

RWA tokens represent ownership or shares in real-world assets — things that exist outside the blockchain. They bring traditional finance assets into the crypto ecosystem.

Key differences from crypto-native tokens

RWA tokens have characteristics that make them fundamentally different from crypto-native assets:

• Counterparty dependency — Their value depends on a real-world entity holding and managing the underlying assets. If that entity fails, the token may become worthless.
• Regulation — Many RWA tokens require KYC (identity verification) and are subject to securities regulations.
• Stability — They tend to be less volatile than crypto-native assets because they track traditional financial instruments.
• Yield source — The yield comes from real economic activity (government interest, loan payments), not from token emissions or trading fees.

How to think about all these tokens

It can feel overwhelming to see dozens of different tokens in your wallet. But they all fall into a few clear categories:

CleanSky automatically classifies every token in your portfolio into the right category and shows you both the token-level view and the underlying exposure — so you always know what you actually own, not just what names appear in your wallet.