Decentralized finance has come up as one of the interesting interventions for the world of finance in recent times. It has completely changed the way people interact with financial services with a vision for enabling financial inclusion for all. Most recently, the applications of decentralized finance or DeFi in asset management have gained the attention of many renowned financial media outlets.
As a result, the interest in finding out the best DeFi asset management tools has also grown profoundly. However, the rapid progress of the DeFi ecosystem has also spurred many asset management tools. Therefore, it could be quite difficult to round up on the top options among DeFi asset management tools. The following discussion offers you an overview of the top DeFi asset management tools.
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Why Do You Need DeFi Asset Management Tools?
The number of projects based on DeFi protocols has increased in recent times with innovative financial products. The different tools for tracking, managing, and hedging exposure through a collection of different DeFi projects are definitely commendable. They have proven successful for different projects in the fields of lending, derivatives, and decentralized exchanges. With the benefits of trustless environments, composability or interoperability, and transparency, decentralized asset management tools can transform the traditional implications of asset management.
Before diving into the details of asset management tools for DeFi, it is important to understand their essential traits. Here are some of the mandatory aspects which you should include in asset management products.
Renowned asset management projects offer the facility for connecting to a wide assortment of DeFi projects, thereby enabling a seamless DeFi experience.
The asset management products for DeFi are able to connect by leveraging a wallet address. Users have the option of sharing their identity if they want to or else remain anonymous.
The best DeFi asset management tools do not imply revoking ownership of underlying assets. The assets continue to reside in the wallet in use.
The most important characteristic of DeFi asset management tools is the scope for flexible accessibility, irrespective of tax bracket or location.
The continuously increasing count of asset management tools features automation. As a result, they can enable collateralization, liquidation, and rebalances seamlessly without the need for user interaction.
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Top DeFi Asset Management Tools
The first thing that comes to mind when thinking about DeFi asset management tools refers to digital wallets. In addition, the applications focused on managing crypto-asset portfolios are also one of the top entries which come to mind when thinking of asset management tools. However, these solutions have some critical setbacks. You don’t need to worry about these pitfalls as you could opt for the following asset management tools for DeFi.
1. Set Protocol
One of the first entries among DeFi asset management tools would refer to the leading asset management solution, Set Protocol. It helps users in leveraging contemporary trading strategies through buying ERC20 tokens, referred to as sets. The platform features an aggregation of different automated trading strategies in a detailed list.
The detailed list has the capabilities for rebalancing in accordance with various technical indicators and trends such as Relative Strength Indexes and Moving Averages. The option of ‘set and forget’ in this protocol provides convenience for users as the sets could go through automatic rebalancing in accordance with their target strategy. As a result, passive investors get the opportunity to capitalize on markets trends without actively participating in trades.
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The next top addition among decentralized asset management tools would obviously bring Zerion to your attention. Zerion offers a unified dashboard for faster tracking of an asset’s position throughout different DeFi products. Interestingly, Zerion has quickly acquired the reputation of being one of the sleekest solutions for asset management. The dashboard offers crucial features that establish the credibility of tracking features in Zerion.
Users could leverage the dashboard for accessing the features for saving, exchanging, investing, and borrowing with some of the notable products in the DeFi landscape. The efficiency of Zerion is clearly evident in the facility of support for different web3 wallets and its non-custodial nature. As a result, users don’t have to deposit their assets in the platform as Zerion tracks only the asset’s position in a wallet.
3. DeFi Saver
The name of DeFi Saver is also one of the additions among best DeFi asset management tools. Investors could explore the benefits of automated asset management services with DeFi Saver. The platform allows investors to ensure ideal regulation of their asset position on the basis of a predefined ratio. DeFi Saver could carry out functions of sales and purchases for maintaining the desired ratio in event of market movement and increased leverage.
The most striking highlight of DeFi Saver points out the facility for integration of different wallets, protocols, and exchanges. DeFi Saver supports wallets such as Coinbase, Trezor, and ImToken. The supported exchanges on DeFi Saver include Uniswap, Kyber, and 0x.
Interestingly, it also supports some of the notable DeFi protocols such as Compound, Aave, and Maker. DeFi Saver is unique when compared to other DeFi asset management tools, which facilitate the connection of human asset managers through a decentralized fashion. On the contrary, DeFi Saver represents a new breed of decentralized asset management tools featuring complete automation.
Many DeFi asset management tools are not capable of catering to team-based asset management. Gnosis fills the void by serving as an asset management platform tailored particularly for individuals aspiring for management of crypto assets in the form of a team. Additionally, Gnosis also includes support for individual investors.
Gnosis is one of the top asset management tools for DeFi as it offers diverse functionalities to users. It enables storing, investing, and trading of crypto assets alongside supporting flexible access to a wide range of DeFi apps. Apart from the asset management functionalities, Gnosis also supports business-oriented users through services such as payroll management.
Another notable addition among top DeFi asset management tools is dHEDGE. It is actually a decentralized asset management protocol featuring integration with Synthetix. The platform allows investors to connect seamlessly with asset managers. As per the claims of dHEDGE, it can connect investors with some of the top investment managers of the world via the Ethereum blockchain.
The protocol and connected platforms focus on transparency as a promising benefit associated with decentralized asset management. Investors could easily access the track records of asset managers with exceptional transparency before putting their capital in dHEDGE.
Most important of all, users could view the performance of an asset manager through the dHEDGE platform leaderboard. Furthermore, it also includes a ‘Performance Mining’ feature that offers rewards to users investing in profitable pools on the platform. The holders of DHT tokens are responsible for addressing governance concerns in dHEDGE.
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The search for top DeFi asset management tools could also take you to Yearn.finance. It is one of the most commonly preferred suites for decentralized finance products. The notable product in Yearn.finance portfolio for asset management refers to Vaults that helps investors for investing their capital.
Subsequently, the capital goes into investments through different unique strategies tailored for offering maximum yield from the asset deposits. At the same time, the strategies are also designed to reduce the concerns of risk in asset management. The foremost advantage of Vaults is the freedom from transaction costs involved in individual trading, facilitated through pooling the assets of investors.
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Alternative for Asset Management DeFi Tools
With so many prolific alternatives among decentralized asset management tools, there is a limited chance that you would look for alternatives. On the contrary, the management of assets could be quite overwhelming even with the use of a special DeFi asset management tool. In this case, you should choose crypto index protocols as the alternative. Crypto index protocols do not need any particular asset management. The tools are helpful for collecting and storing top crypto assets in smart contracts with promises of returns without interventions.
The understanding of different entries among the best DeFi asset management tools has provided a clear impression of their potential. You can go through basic guides and an overview of asset management on DeFi for building your foundational knowledge of DeFi asset management. As a result, you can find the best pointers to search for the ideal DeFi asset management tools according to your requirements.
At the end of the day, the choice of a DeFi asset management tool depends a lot on your requirements and preferences. You can choose real asset managers through decentralized platforms or opt for completely automated tools. Learn more about DeFi asset management right now!
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*Disclaimer: The article should not be taken as, and is not intended to provide any investment advice. Claims made in this article do not constitute investment advice and should not be taken as such. Do your own research!
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Author: Diego Geroni