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Comparing Five Crypto Portfolio Management Protocols
Portfolio Management Protocol.
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In the traditional financial market, you may be quite familiar with the "index baskets" such as S&P500, Dow Jones Industrial Average (DJIA), etc. These index baskets each include a lot of financial assets. Products designed by leading experts, helping you diversify your portfolio risk and achieve investment performance in the simplest way.
In this article we will compare 5 blockchain-based asset managers by their goals, how they work, and what is the use case of their tokens.
yEarn Finance is a liquidity aggregator, running on the Ethereum blockchain for lending platforms. yEarn Finance helps users achieve the highest profit during smart contract interactions.
What is the problem that yEarn Finance sets out to solve?
Liquidity mining programmes like Compound or Aave are places that allow LPs (liquidity providers) to provide liquidity and earn profits.
Currently, more and more similar protocols are appearing, with flexible forms of change. The problem is: how can LPs maximise their profits? It is very difficult to switch between protocols continuously.
yEarn Finance was born to solve this problem. It makes it easy for users to optimise profits with algorithms to compare, choose the place with the highest revenue, save research time and switch between parties.
yEarn uses the following protocols for aggregation: Compound, dY/dX, Aave, Curve, and supports the following stablecoins $DAI, $USDC, $USDT, $TUSD, $sUSD, and more.
dHedge is a decentralised asset management protocol built on Ethereum. dHedge allows anyone to create their own investment fund on Ethereum or invest in funds managed by others in a completely non-custodial way using Synthetics Assets. dHedge brings decentralised, permissionless services to traditional wealth management services.
Harvest Finance is an automated yield farming protocol that allows profit sharing between 'hard worker' and 'farmer'.
Harvest Finance automatically collects the highest returns from DeFi protocols and optimises the profits received using the latest farming techniques.
Indexed Finance is a project focused on developing passive portfolio management strategies for the Ethereum network.
Indexed Finance is managed by $NDX governance token holders, which are used to vote on protocol update proposals and high-level index management, such as defining market sectors and creating new management strategies for investors.
Vesper provides a platform for DeFi products that are easily accessible to users. Vesper DeFi products make it easy for users to achieve financial goals in the crypto space.
Vesper Products: At launch, Vesper offered many profitable “Grow Pools” that allow users to increase profits from holding coins like BTC, ETH, VSP, DAI, USDC. Vesper Grow Pools represent the first product on the Vesper platform. Further products will be provided to users in the near future.
Basically, it's like Yearn.finance (YFI). Vesper helps users maximise profits by automatically sending their funds to high-interest protocols: Compound, AAVE, Curve, Uniswap, etc.
What Else Did You Miss?
How Yearn Works and $YFI Use Case
How Dhedge Works and $DHT Use Case
How Harvest Works and $FARM Use Case
How Indexed Works and $NDX Use Case
How Vesper Works and $VSP Use Case
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Asset management is a large market sector in traditional finance with revenue generating $4.2B per year. This is an opportunity for non-crypto native users to tap into the growing DeFi opportunity, and for the DeFi projects to move in this direction or collaborate with existing partners.
In this article, we have shown how five asset managers work. These managers are basically quite similar in operation and token use case. However, each strategy in each protocol is different, leading to different rates of return.