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DeFi – Asset Management: An Overview

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Alfredo de Candia Hacker Noon profile picture

@alfredodecandiaAlfredo de Candia

Author of "Mastering EOS" & "Mastering DeFi" blockchain specialist, android developer

We are towards the end of the in-depth study of the various macro areas of decentralized finance (DeFi) and this time we will focus on the management of the assets and platforms that allow you to interact with them.

The sector of digital assets and platforms that allow them to be managed is also interesting, in fact we have previously talked about both the various protocols that allow you to manage assets of other blockchains, and real digital assets designed with a very specific purpose.

In this branch we have both the various tokens that are pegged to other assets, for example all those linked to Bitcoin (BTC) and both protocols and platforms that allow you to manage the same but also other digital assets, such as Idle Finance.

In fact, systems and smart contracts have been born over time that have made it possible to improve and automate some aspects of trading but also to manage a virtual portfolio with various assets, allowing you to buy or sell an asset based on the market trend and obtain the maximum result based on parameters chosen by the user.

Let's think, for example, of the combination of price trend charts and their median values ​​that follow a more or less predictable pattern and then decide whether once that point is reached, sell or appear the relative asset and obtain a profit or rebalance with respect to another asset, then you sell one to buy another or convert into a stablecoin to wait for the best time to return to operating with these systems.

We are talking about really complicated tools and even if the various interfaces are simple, it is difficult to understand their use and performance, especially for beginners or for those who approach this sector for the first time.

These tools, as incredible as they may seem, always hide the problem of being monitored adequately since the market trend can change suddenly and obtain both triple-digit gains and abysmal losses while also losing all the capital, so they must be used with knowledge of cause and control them, which certainly does not make you sleep peacefully.

Management of the assets we do directly and without third parties who can take our place and guide us in the relative choices, which can be an advantage as we do not have to submit to the will of a third party, but which means that total responsibility falls on us and without being able to appeal to someone for our mistakes.

What platforms are there around?

There are many platforms and they vary according to the purpose we are interested in, since if we want to move an asset from one blockchain to another, then we should use protocols that manage these assets, such as pTokens as they are cross-chain and we have pBTCs on both Ethereum and EOS, but also pETHs on EOS, therefore exploiting the crypto of a blockchain on another faster and more scalable one such as EOS.

For the simplified management of assets and therefore of the "set & forget" series we find Idle Finance on Ethereum, which not only allows us to have an interest in our stablecoins and wBTCs, but also allows us to receive completely free tokens, that is those related to the deposited asset, the IDLE tokens and also the underlying protocol token such as Compound and then receive the COMP tokens, so the advantage is threefold.

While on EOS we can interact with Pizza Finance which allows the same functions that we find on Idle Finance but on the EOS blockchain and with lots of cryptocurrencies to deposit, including pBTC and pETH, therefore a significant advantage, and also PIZZA tokens are obtained. for the entire duration of the deposit, in addition of course to the interests which in some cases are triple digits such as the MILK token which returns at a rate, APY of 282%.

For those who prefer something more complex, then we see that on Ethereum we can use the TokenSets platform, as it is possible to decide the type of strategy to make our crypto and stablecoins bear fruit, choosing or creating the one we prefer and according to our needs.

On EOS instead we can explore a new platform that takes the name of SX Vaults and in this case we see that by depositing our EOS in the smart contract, which passed the audit, they will be managed in an optimal way and with various strategies to maximize the return, and all without having to worry about doing particular operations, given that once the EOS are deposited, they will mature over time, and in this case we are talking about an APY of almost 8%.

How can I use these platforms?

Obviously, as you can see, the platforms are many and on many blockchains, and you should know them all, but there are no problems from that point of view because all this information and how to use the related protocols have been grouped in the first book that explains the various topics in detail, which takes the name of "Mastering DeFi - A practical guide for beginners and the advanced", important because it not only explains the basics of this sector and the various steps of the various protocols, over 30, but it is also the only one that examines 3 different blockchains such as Ethereum (ETH), EOS and Tron (TRX).

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book that analyzes the macro-categories of decentralized finance which are:

All organized into 8 chapters and also divided by blockchain so as to have a complete picture of what we find on the various blockchains and also make the relative comparisons to leave maximum freedom for anyone to use the blockchain they prefer without closing the door to others.

Over 30 protocols analyzed in detail and details, with relative fundamental steps, an indication of the various costs incurred to carry out the various transactions, so as to make the reader aware before he can interact with him.

Translated into 8 different languagesItalianEnglishGermanFrench, SpanishPortugueseDutch, and Japanese, so as not to exclude anyone from this revolution that is underway and will continue in the years to come.

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