As the DeFi ecosystem continues to grow, users are tasked with keeping up with more positions across more platforms on an increasing number of projects, contracts, and tokens.
While the vibrant growth of DeFi system is certainly one to marvel about, it’s crucial that we draw attention to projects helping to keep a closer eye on our holdings, namely through different tools and products which aide in risk and asset management.
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An Overview on Asset Management in DeFi
In the past year alone, we’ve seen a number of products offering different ways to either track, manage or hedge exposure through a suite of various DeFi projects in the lending, DEX and derivatives sectors.
Across the board, the common theme is that of accessibility, ultimately making it easier (and safer) for DeFi users to keep track of their ecosystem interactions in a suite of intuitive dashboards and interfaces.
It’s important to note that certain projects on this page will actively hold capital (like Set Protocol) while others are merely tools to track and manage capital which is spread across different products like Compound or Maker. With that, let’s explore some of the key characteristics of asset management projects in DeFi.
Asset Management Characteristics
Some of the most notable aspects of asset management products include:
- Non-custodial – Ownership of the underlying assets is never revoked and tends to live in the wallet being used.
- Composable – Many of the top Asset Management projects connect to a wide number of DeFi projects – ultimately creating an end-to-end DeFi experience.
- Automated – The growing number of Asset Management tools are automated, meaning rebalances, collateralization, and liquidations can occur seamlessly without user interaction
- Globally Accessible – Asset management tools are accessible to anyone regardless of their location or tax bracket.
- Pseudo-anonymous – Asset Management products often connect through a wallet address, meaning that identity is optional to those who wish to share it.
Here are a couple of projects we recommend checking out to better hedge risk and manage DeFi exposure in 2020.
The platform aggregates a number of automated trading strategies into a comprehensive list which rebalances subject to different technical indicators and trends like Moving Averages and Relative Strength Indexes. Users can “set and forget” as Sets rebalance automatically relative to their target strategy, meaning passive investors can capitalize on market trends without having to make those trades themselves.
Why Set Protocol?
- Yield Sets leverage Compound cTokens, meaning users earn passive income thanks to interest earning assets whenever a Set is in its stable state.
- Set Protocol gives different traders the opportunity to share their trading strategies through Social Trader, allowing users to follow the same investment strategies as those with years of experience in a few simple clicks
- Set positions can be easily managed via the Account Dashboard or on other products like Zerion or DeFiSnap.
As the DeFi dashboard currently tracking the most DeFi products, Zapper is quietly making waves as a sector-leading asset management tool.
In light of the recent merger with DeFiSnap and DeFiZap, Zapper is well suited to both manage and deploy capital into top DeFi platforms.
- Track positions across top DeFi protocols like Uniswap liquidity pools and Synthetix in tandem with rising projects like Curve
- Easily track any debt owed across DeFi products to see what positions may need to be supplemented
- See how your DeFi positions are spread out by % using their Protocol Allocation tool.
- Track how different positions are likely to perform with ROI estimates.
- Bridge capital between different liquidity pools using Pool Pipes
As a unified dashboard to quick track position across an endless number of DeFi products, Zerion has quickly taken lead as one of the sleekest products in the asset management sectors.
To give some credence on Zerion’s tracking capabilities, the dashboard currently offers the ability to Save, Exchange, Invest and Borrow with a number of DeFi’s most well-renowned products.
- Zerion supports a number of web3 wallets and is non-custodial, meaning the product merely tracks positions in a wallet, rather than asking users to deposit them into the platform itself.
- Users can seamlessly link their Zerion dashboard on mobile using a QR code. This allows users to keep track of their positions on both mobile and desktop without having to worry about ever transferring funds from their wallet
- Users can leverage Compound, Uniswap, Maker and more all from one dashboard in a few clicks
- Outside of the support products, Zerion tracks positions on Set Protocol along with every token in a user’s wallet.
Built with Flash Loan capabilities, DeFi Saver offers a suite of automation tools to make it easier for users to better maintain their collateralization ratios while having failsafe’s in place in the case of major price swings like we saw with Black Thursday.
Why DeFi Saver?
- Seamlessly create, manage and maintain a Maker Vault from one place
- Track savings across Compound, dYdX, Fulcrum and the DSR
- DeFi Saver offers a way to participate in Maker liquidations without a technical background.
DeFi Asset Management List for 2020
Here are a list of all the projects currently on our radar when it comes to DeFi Asset Management in 2020.
Want to see your project listed here? Please contact us with a compelling argument!
As DeFi continues to mature, we’ll need more tools to seamlessly manage positions across such a wide number of products.
More so than convenience, making DeFi accessible to new users through a suite of tools and guides is crucial to crossing the chasm. We’re quite bullish on asset management tools and look forward to covering more of them in the coming year!
Virtually all DeFi asset management projects simply require users to connect a web3 wallet like MetaMask. No funds are transferred as the dashboard simply analyzes and displayed the different values across various positions and holdings.
Yes, all asset management products are non-custodial, meaning there is no transferring of funds or need to share crucial information like private keys in order to benefit from their services
Due to Ethereum’s public distributed ledger, dashboards are able to query different wallets to analyze their positions on any supported product or service. If a known DeFi position of yours is not being displayed on a dashboard, it is simply because that particular product has not yet integrated support for it.
Cooper is the Editor of DeFi Rate and a contributor to leading DeFi outlets like the Defiant and Bankless. He is active in the DAO ecosystem through projects like MetaCartel and Raid Guild where he seeks to incubate governance models and grassroots community development. He is an ambassador of Set Protocol and the Director of Fitzner Blockchain Consulting where he authors a weekly publication called Token Tuesdays. To stay up with Cooper, follow him on Twitter.