Have you ever considered joining the DeFi asset management platforms for your assistance?
If yes, this article is the best place to get information about the leading DeFi asset management platforms. These platforms help investors deal with the DeFi ecosystem and provide them with facilities and tools to track their investments, allowing them to grow their finances while managing the associated risks.
Before we present you with various DeFi asset management platforms, it is crucial to understand the concept of the DeFi system, components, its working, benefits, potential use cases, and role in asset management. The understanding will help you assess the credibility of the platforms available in the market. As selecting the right platform is a laborious and time-consuming job, the article presents you with the best options from the market to choose the one that attracts you the most.
What Is the DeFi system?
The term DeFi stands for decentralized finances. Ethereum developers and entrepreneurs in 2018 introduced it. They ideated to develop a financial system and open applications for managing finances without the need for central authority but by providing security and transparency to the end-users.
DeFi system is an advanced emerging global financial system based on blockchain technology. The system lays its foundation on the Ethereum blockchain, one of the most advanced blockchains in the financial market. The financial services under the umbrella of DeFi are also using other blockchains to gain benefits. DeFi is a robust financial system for those who believe in the power of cryptocurrencies and enjoy its features of being safe, transparent, and decentralized. The DeFi system moves beyond the concept of cryptocurrency. It presents a new financial system with a robust infrastructure that replaces the traditional financial system and surpasses its limitations and prohibitions.
Unlike the traditional system that involves banks, intermediates, intermediaries, or funds to take care of your amount, the DeFi system works oppositely. You would not need centralized authority, bank, or middleman in this system, making you a source for managing your finances. Decentralization makes DeFi reliable, transparent, and a quick method to make transactions.
It also saves investors the transaction fees and service charges usually involved in the bank to bank or company to company transfers. As the system uses blockchain technology, the end-users can access information in real-time. The DeFi system is also free from geographical limitations. Thus, investors can make and manage investments from any part of the world.
In modern terms, it is also known as self-custody finance, and only the person owning the amount has access to their account. The system provides equal investment opportunities for everyone globally, thus making investment opportunities accessible for everyone. The system does not require investors to share their keys or passwords with anyone to complete transactions.
The DeFi system also features composability, due to which investors can interact in several ways, use multiple protocols, and earn interest by leveraging, renting, and swapping protocols.
What Are The Benefits of the DeFi System?
Before discussing the DeFi system in asset management platforms, let us look at the primary benefit DeFi system offers its users. These benefits attract individual investors and financial managers to utilize the financial services. Let us look at the help of the DeFi system.
- No need to depend on banks or any centralized authority.
- Provide open access to manage finances with transparency and trust.
- Investors or users oversee managing their assets.
- The system provides innovative solutions for earning more profits.
- No permissions are required for making transactions.
- There is more room to include technical advancements for the betterment of customers.
What Is The Role Of DeFi In Asset Management?
Asset management systems have been of greater interest to world financial economists. The plan governs the movement of assets and money across the world. Emerging cryptocurrencies challenged the traditional financial service system. They were considered an effective alternative to the conventional financial system until DeFi hit the market.
With the introduction of DeFi to the world, it wins the attention of investors and asset management professionals. They began to explore the potential of the DeFi system and its functionalities to support an asset management system. This attention was to the unique characteristics and features of the DeFi system and its potential to provide the base for future asset management systems.
Decentralization of the financial system has many benefits for financial managers and investors. It is the core concept behind the DeFi system and makes it an open financial system. In addition to this, another feature that adds to the real power and popularity of the DeFi system is that it is not limited to digital assets only. Investors can tokenize real-world assets and trade them under the DeFi protocols. The list of assets includes many real-world assets, including real estate, commodities, physical goods, and private equity shares. The tokenization digitally subscribes eligible investors to put their holdings for digital subscriptions on a decentralized blockchain.
Along with these features, the three most crucial characteristics of the DeFi system that accredit asset management are transparency, composability, and trustworthiness. Transparency is the first and foremost important element. DeFi system protocols ensure all transactions are transparent and visible and permit easier asset creation.
Different protocols have different performance criteria and functionalities, including asset tracking, reporting, and more, which must be crystal clear in front of the investor and platform. Composability solves the problem of asset management in the DeFi system by bringing more than one position, risk management, and yield. At last, trustworthiness is crucial for users and their platform to build an integrated relationship of mutual trust without filling out any terms and conditions or policies.
These three virtues are a strong pillar to attracting financials and investors to believe in the DeFi system.
Top 7 DeFi Asset Management Platforms
Choosing the best DeFi asset management platform is pivotal to extracting benefits from emerging financial services. With a basic understanding of the DeFi system, its benefits, and the role of DeFi in presenting futuristic asset management systems, you must also know the key characteristics that will help you make the right decision. Here, we have enlisted some leading platforms after robust testing of dozens of platforms available on the internet. You can evaluate the characteristics to judge the functions and attributes of these DeFi asset management platforms to assess their credibility.
- Coinbase Wallet
With the Coinbase Wallet, you have full custody of your digital assets. People who own cryptocurrency can keep their private keys for their wallets on their phones instead of at an exchange.
For those who want to keep their assets on Coinbase, the coinbase Wallet app is a stand-alone program that provides access to an app browser and the decentralized web. There are no prerequisites for using the Coinbase Wallet app, which is free to download and use. User-friendly Coinbase Wallet allows customers to maintain their private keys and keep their cryptocurrency holdings securely on their devices. If you want to purchase or sell cryptocurrencies using US Dollars or other fiat currencies, you will be unable to link your Coinbase Wallet to your bank account. You may access and use the Coinbase Wallet from any location in the world.
Using Coinbase Wallet, you may get access to a broad spectrum of decentralized innovation – you can purchase and store ERC-20 tokens, engage in airdrops and initial coin offerings (ICOs), acquire unique art pieces and other valuables, explore decentralized applications (DApps), shop at traders who accept cryptocurrency, and transfer crypto to anybody in the world. Coinbase Wallet is available for both Mac and Windows computers.
- DeFi Saver
Using DeFi Saver allows people to handle assets throughout various protocols in a centralized location. They make it simple to utilize the MakerDAO and Compound dashboards. A customized Dai lending dashboard termed Smart Savings is also available, which links users to various protocols such as Compound, Fulcrum, and Maker (to name a few). While giving unique capabilities to manage DeFi assets, this results in a less fragmented and more consistent experience for users.
MakerDAO has been the primary focus of the team’s efforts. One distinct feature of Maker’s platform is a minimal level margining ratio. Suppose your positions’ margin requirement ratio falls below this threshold caused by price drops (in ETH or BAT). In that case, your investment is liquidated and used to repay the loans created by the protocol, which is a distinctive characteristic. CDP Automation presently manages over 75,000 ETH in over 200 distinct positions, a significant amount of money. In the DeFi ecosystem, it has evolved into a vital element for many members.
The compound is the second primary protocol that DeFi Saver is capable of supporting. Users may manage their loans and deposits in the Compound ecosystem using their Compound dashboard, which is available online. Furthermore, using DeFi Saver’s Smart Savings tool, lenders may rapidly identify the most effective interest rates among many Dai lending choices in decentralized finance, saving them time and money. DeFi Saver hopes to address this with its CDP Automation solution built on smart contracts and allows for automatic ratio control. Because MakerDAO is often used to leverage ETH, this capability essentially offers users automated liquidation protection and automated leverage growth.
HyperDex is an accessible key-value store that is spread across several nodes. HyperDex offers a one-of-a-kind search primitive that allows users to search over the stored database. HyperDex maintains the efficiency of typical key-value stores while also assisting in the searching process in the database. It enables you to get ANY and ALL liquidity from across all of these various networks from one spot while assuring the best pricing and the quickest speeds possible. Definitively, eliminating all liquidity barriers for DeFi swaps will lead to the lowest prices and the best pricing.
Polygon and Ethereum users don’t have to move between multiple DEX and aggregators anymore, as they can access over 30 of the most popular ones from one location. This saves you the time and effort of searching every DEX for the token you’re looking for. The accessible liquidity sources will be shown in a single search platform from HyperDEX.
Trading or swapping at the most significant rates and prices is as simple as clicking a button. You can also compare rates in real-time, so you’ll know precisely how much better and more you’re getting on HyperDEX. With HyperDEX transaction optimization, you may save money on gas costs. Utilizing Uniswap liquidity source through HyperDEX will cost you LESS than using Uniswap directly because of our fast swap routing operations.
Decentralized finance (DeFi) has cleared the path for itself as the future financial system, one that is global and open. For any conventional or centralized financial service that you use nowadays, there is almost certainly a decentralized alternative that is open to everyone in the world who can access the internet and perform the same functions.
Investing in DeFi was once a complex, multi-step procedure that required separate applications for different financial services. The world of DeFi is now brought to you via applications such as Zerion, which make it simple for you to set up an Ethereum wallet, explore different assets, perform transactions, and manage your cryptocurrency portfolio all from one location.
Zerion is a platform for non-custodial asset handling that brings together all of a company’s DeFi operations. For those who like simplicity, clarity, and user-friendliness, Zerion is a non-custodial DeFi Dashboard built for you.
While competing against a sea of rivals, Zerion offers a straightforward ui, compatibility for popular DeFi apps, and the least invasive approach. Consider Zerion to be a kind of dashboard for your DeFi investments. In one look, you can examine your account’s balance and its transaction records, savings, and investments.
Because of its less intrusive approach, you may use many of Zerion’s capabilities without giving the company access to your cash. This is a crucial function, especially in light of the frequent DeFi hacks.
MetaMask is now recognized as an institutional DeFi asset management protocol utilizing the Ethereum blockchain. The platform initially emerged as a crypto wallet and gateway to blockchain apps, and now it uses web 3.0 and supports a DeFi wallet for storing the DeFi tokens.
The platform has millions of users worldwide. It has simplified the access to DeFi tokens without compromising the security, compliance requirements, and operational efficiency of the DeFi ecosystem. MetaMask allows research, pre-trade compliance, trade execution, monitoring, reporting, and custody of the assets. The MetaMask server integrates well with most of the Defi dapp. This integration opens access to thousands of tokens available in the ecosystem and allows investors to trade, stake, lend, borrow, manage assets, and enjoy more features. All the holdings at MetaMask are secure using multi-signature approvals and storage keys.
It’s another prominent tool intended primarily for liquidity providers, and it allows you to connect to significant protocols like Uniswap, Balancer, Curve, 1inch, and many others.
The easy-to-use dashboard on LiquidityFolio makes it simple to keep track of your portfolio at a glance, which is one of the most significant aspects of the platform. The site also includes pool research tools that enable users to investigate possible pools they consider investing in based on costs and temporary loss.
The primary advantage of LiqudityFolio is that it helps investors locate the most appropriate liquidity pool for each ERC-20 token they stake, resulting in the highest potential return for each ERC-20 token staked.
Among all the available DeFi asset management platforms, Gnosis is one of its kind to support the individual and a team of investors. It is a safe and secure platform for dealing with DeFi tokens. It has introduced its unique Gnosis protocol V2 to offer MEV protection and integration with liquidity channels across DEXs to provide investors with the best prices. The platform has various functionalities and features and follows protocols that fulfill the need of team investors. It has a wide variety of asset management tools that helps investors. Using Gnosis, users can securely create the tokens of their choice, trade them, and hold them to earn rewards by building them on the Ethereum blockchain.
The Gnosis developer portal is a well-explained system for managed financial services. It offers mentoring, funding, and marketing facilities for teams under the Gnosis Ecosystem Fund. The platform also contains tutorials and technical documentation to support investors to the maximum. It aims to develop a strong community that actively connects over discord, Twitter, and mediums to discuss the platform’s functionality and DeFi market position. The platform also runs a non-profit conference organization DappCon and a co-working space named Full Node for decentralized technology innovations. Gnosis also supports a prediction market, GnosisDAO, that transparently guides investors to make decisions regarding governance, support, and development of its token ecosystem.
Many DeFi asset management platforms are available in the digital market that let investors enjoy a secure and decentralized system for financial services. All venues offer different features, functionalities, and performances. Investors must search for the platform that fits their needs and use it to explore the DeFi ecosystem and its protocols.