The track that provides friendly investment methods for new DeFi players is getting more and more lively.
Original title: “DeFi investment threshold is too high? Take a look at these 24 one-stop platforms
Written by: Azuma
The gold-absorbing effect of DeFi continues.
According to DeFi Llama data, on April 6, the total lock-up volume (TVL) of DeFi applications on the major public chains exceeded the 100 billion U.S. dollar mark for the first time. As of April 21, this figure has climbed to 117 billion U.S. dollars.
In the crypto world, the figure of hundreds of billions of dollars is obviously amazing enough, but compared with traditional finance, this amount of funds is actually only equivalent to the 40th largest bank in the United States, and the amount of funds is roughly equivalent to Silicon Valley Bank and BBVA USA.
Capital is always profit-seeking. Under the current yield environment, funds outside the circle will undoubtedly continue to flock to DeFi with the smell of high returns, and TVL values ​​are expected to break through new barriers. However, for new entrants, whether it is an institution or a retail investor, DeFi, as a native product of the world on the chain, always has a certain level of understanding and threshold for use. How to find a pool with sufficient security and high enough APY (annual return) It is a common problem for all newcomers to earn as much profit as possible with the smallest risk possible.
In the face of such service opportunities, there are not a few projects on the market that hope to solve this problem, such as income aggregators such as yearn.finance and DFI.money, robo-advisor services such as Rari Capital and DAOventures, and decentralized funds such as Cook Protocol. , And on-chain asset management platforms such as DeFi Saver and Zapper.
Although these projects are different in name and positioning, the amount of lock-up, capital movement controller (contract or professional or user), the number of integration agreements, the number of supported currencies, the capital threshold limit, the risk level, the minimum return, and more The ecological integration situation and other aspects are also different, but from the perspective of vision, it can be said that different routes will lead to the same goal, that is, to solve the problems of DeFi inoperability and high threshold for new project research for new players. Here, we will refer to these services collectively “One-stop DeFi Investment Platform”.
In this article, Odaily Planet Daily will take stock of some of the more mature “one-stop DeFi investment platforms” that exist on the market, clearly show the current service capabilities of this track, and assist new players in making investment choices. (Note: The data in the article is as of April 20, 2021.)
Yearn Finance (YFI)
As the first project to push the benefit aggregation service into the mainstream view, Yearn Finance (YFI) is undoubtedly the leader of this track.
The core product of Yearn Finance is its machine gun pool (Vault). When users deposit stable coins such as DAI, USDC, USDT and non-stable cryptocurrencies such as ETH and YFI, the machine gun pool will invest funds in some longer-running and better reputations. In the DeFi protocol, the deployment of funds will be automatically adjusted according to the real-time floating rate of return of different protocols. While automatically helping users find the maximum benefits, it can also reduce the gas cost of decentralized operations through a unified adjustment mechanism.
Vesper (VSP)
The revenue aggregation service Vesper provides users with a complete set of DeFI financial revenue optimization solutions. Users can deposit different assets such as DAI, USDC, ETH, WBTC, VSP, and choose radical or conservative risk preferences. The agreement will replace users in real-time Detect APY and deploy corresponding mining positions accordingly.
Vesper does not charge deposit fees, but will charge a 0.6% withdrawal fee and 15% of the profit as an agreement fee. 5% of the fees collected will be used for development, and the remaining 95% will go to the Vesper Fund to repurchase VSP in the secondary market to feed back to vVSP pledge users.
Harvest Finance (FARM)
On the whole, Harvest Finance’s functions and routines are the same as YFI, that is, it solves the core needs of users to obtain high revenue, and at the same time reduces users’ high-yield search costs and chain operation costs.
In Harvest Finance, users can deposit DAI, USDC, USDT and other cryptocurrencies to obtain fDAI, fUSDC, and fUSDT as deposit and income vouchers. In addition to the DeFi mining revenue, Harvest Finance will also give users a certain governance token FARM as an incentive. FARM holders can share a 5% fee from the protocol mining revenue.
It is worth mentioning that Harvest Finance suffered a hacking attack last year, with losses totaling USD 33.8 million (the hacker returned USD 2.47 million), accounting for about 3.2% of the total value of locked positions in the agreement before the attack. This is also the entire 2020 theft. The DeFi security incident with the largest amount of money.
Value DeFi (VALUE)
Value DeFi is another DeFi revenue aggregation project besides Harvest Finance that was hacked last year (with a loss of approximately US$5.4 million due to flash loan attacks), but eventually came out of the trough. As of the post, Value DeFi’s total lock-up volume has greatly exceeded the level before the hacker attack, reaching 860 million US dollars.
As a revenue aggregation protocol, Value Vaults will also use a variety of strategies to maximize the user’s return on assets. Similar to Harvest Finance’s token FARM, VALUE can also share part of the platform profit in addition to governance value within the Value DeFi protocol.
DeFi Saver
DeFi Saver is a one-stop DeFi asset management solution. One of the core functions of the project is Smart Savings. This service currently integrates four mainstream protocols including Compound, Maker, Aave, and dYdX. The real-time interest rates of different protocols are placed in the same dashboard. Users can track the real-time interest rate changes of different protocols through the dashboard. At the same time, DeFi Saver also supports users to instantly transfer their assets from one protocol to another. , And then get the highest profit.
Zapper
Zapper is positioned as a DeFi asset management platform. The project provides a seamless interface for interacting with DeFi protocols. A variety of mainstream DeFi protocols can be accessed on its platform, and all operations can be completed on one operation interface.
Zapper can help users make one-stop investment, monitor and manage all their DeFi assets and liabilities on multiple chains (currently supporting Ethereum, BSC, Polygon). Zapper’s goal is to allow people with low technical levels to enjoy the benefits of DeFi, to help Xiaobai simplify the complexity, find the right investment platform and mining pool, and control his own investment ratio in real time. Users no longer need to find the URLs of various platforms, learn the investment process from scratch or calculate the return on investment.
Services like DeFi Saver and Zapper also include Zerion and InstaDapp. These projects will provide a comprehensive dashboard covering multiple information, but users need to perform the warehouse removal operation themselves.
Idle (IDLE)
Idle is also a decentralized automatic rebalancer strategy (Rebalancer) protocol. The protocol automatically manages the distribution of digital assets deposited by users, that is, users’ assets are moved between different third-party DeFi products in real time according to algorithms. As for the balance of risk and return, users can choose to maximize interest rate returns through the MaxYield strategy, or minimize risk exposure through the RiskAdjusted allocation strategy.
The biggest highlight of the Idle protocol is that it can automatically move warehouses in various platforms according to the user’s goals. At the same time, the automatic warehouse function is opened at the protocol level, and anyone can trigger it. Currently, the main tokens supported by Idle are DAI, USDC and USDT.
Rari Capital (RGT)
Robo-advisor service Rari Capital has adopted an automatic rebalancer strategy (Rebalancer) for arbitrage between different agreements, including but not limited to market making, arbitrage, decentralized insurance, etc. The products that have been connected include AAVE, Opyn, 0x, dYdX and so on.
From the product point of view, Rari Capital currently supports 3 fund pools (Stable pool, Yield pool, ETH pool). Users can deposit stablecoins or non-stable assets such as ETH to obtain corresponding RSPT tokens (synthetic stablecoins), RYPT tokens and REPT tokens, and redeem funds when needed. All three pools will charge a 9.5% fund management fee, and the first two pools will charge an additional 0.5% withdrawal fee.
DAOventures (DVG)
Positioned as an intelligent investment advisor, DAOventures can provide DeFi users with a set of intelligent, easy-to-understand automated tools and services.
Through DAOventures, users can have one-stop access to diversified DeFi products, including lending, fund management, strategic choices, derivatives, decentralized insurance, and more. The Robo-advisory function of the platform will automatically calculate and evaluate the fund management income of DeFi products in the background, and make appropriate product recommendations according to the customer’s risk level, so as to reduce the threshold and concerns for users to participate in encrypted asset investment , To help newcomers enjoy the DeFi bonus.
In addition to robo-advisors, DAOventures has also designed a clear and easy-to-understand visual interface that allows users to view historical returns and choose corresponding strategies based on risk conditions.
Odaily Planet Daily has previously interviewed the DAOventures project team. For more details, please click ” DeFi investment is difficult, and the threshold is high? It’s better to try DAOventures, an intelligent investment advisor .
Cook Protocol (COOK)
The Cook Protocol is slightly different from all the above projects. Although it is also to solve the problems of inadequate DeFi and the high threshold for new project research for novice players, it uses a fund form that is more familiar in the traditional investment field. , The program is to provide users with a variety of fund products.
Fund managers can not only effectively manage their own investment portfolios, but also charge certain fund management commissions by creating decentralized funds one by one. Novice investors can “free ride” and invest in this high-risk and high-return industry in a more professional way.
Odaily Planet Daily has also interviewed the Cook Protocol project team. For more information, you can click “Use decentralized funds to attract Xiaobai. Will “Cook Protocol” be better than an aggregator? “.
TokenSets
TokenSets is an encrypted asset portfolio management platform based on Set Protocol. In addition to providing robot strategies that operate in accordance with specific algorithms, the platform also provides follow-up investment strategies combined with social concepts, which can connect professional traders with ordinary investors, and provide ordinary people with a platform with professional investment strategy opportunities. tool.
On TokenSets, professional traders can create and manage their own trading and mining strategies, and announce these strategies to the public. Ordinary investors choose to follow the operations of copying professional traders to execute the corresponding strategy Set (such as a basket of index funds). Therefore, for ordinary users, as long as they choose a professional trader’s strategy, and then buy and hold, they can easily replicate the investment behavior of professional traders.
dHedge (DHT)
dHedge is an asset management protocol built on Synthetix. Its mode of operation is similar to Cook Protocol, which allows anyone to establish their own investment funds on the chain or invest in funds managed by others.
During the investment process, users will be able to retain ownership of assets throughout the process, and fund managers have no right to withdraw any funds. At the same time, the synthetic assets provided by Synthetix allow users to invest not only in DeFi, but also in rare metals, foreign exchange and stock markets.
Enzyme Finance (MLN)
Enzyme Finance, formerly known as Melon Protocol, is an on-chain asset management platform based on Ethereum. Anyone can deploy an on-chain fund on the protocol, and various detailed parameters of the fund, including fee structure, risk management profile, authorized subscription assets, investor whitelist, etc. can be customized.
For investment users, after buying the corresponding fund shares, they will earn income according to the specific performance of the fund (of course, they may also lose).
PEAKDEFI (PEAK)
- Website: https://peakdefi.com/
- The underlying chain: Ethereum, BSC
- Lock-up amount: about 3.5 million USD (only on the Ethereum chain)
PEAKDEFI’s core product is its Global Fund (The Global Fund), which is a decentralized fund operated by all the community. The project believes that although some users may be really interested in how to invest, more users actually just want to enjoy the benefits without thinking. This is the reason why PEAKDEFI was born.
Specifically, there will be a number of different fund strategies within PEAKDEFI, and the Global Fund will automatically move positions to the best performing fund strategy through smart contracts to track the maximum return.
Stake DAO (SDT)
Stake DAO is a DeFi service aggregation platform built by the community. Stake DAO provides a variety of DeFi protocol wealth management services, including the revenue optimization service “Strategies”, which allows users to deposit stable currencies such as DAI, USDC, USDT, and other non-stable currency assets into the corresponding investment strategy pool. The agreement will Earn mining revenue through DeFi applications such as Curve, and increase the profitability through automatic reinvestment.
Using the Strategies service of Stake DAO will be charged a small management fee and exit fee, and the proceeds will be returned to the community members who pledge SDT. What needs to be reminded is that in the Strategies service, a single pool only corresponds to one DeFi product, so it seems that there is no cross-protocol transfer of warehouses to chase high returns.
APY.Finance (APY)
APY.Finance is a revenue aggregator for DeFi liquidity mining scenarios. The protocol can automatically allocate the funds deposited by users to the liquidity mining strategy with the highest revenue to simplify liquidity mining operations. The APY.Finance agreement will centralize all liquidity and transfer funds in one transaction, thereby reducing gas consumption for everyone.
dForce Yield Market (DF)
dForce Yield Market is the second core asset agreement launched by dForce. It aims to become a high-yield stable coin Yu’ebao, which provides users with the highest return on DeFi liquidity mining income in the market. Currently supported currencies include USDx, GOLDx, USDT, USDC, DAI. Users depositing tokens in the interest-bearing market will automatically obtain a corresponding proportion of dTokens (for example, depositing USDx will get dUSDx), and each dToken represents the underlying reserve token and its corresponding income rights.
Mushrooms (MUSH)
Mushroom Finance is a machine gun pool (Vault) focused on seeking sustainable profits in the DeFi world. Users can get passive income after depositing WETH, WBTC, DAI, USDC into the pool. Mushroom Finance’s profit strategy will be through Alchemix, Curve Wait for integrated applications to realize benefits.
The income of the machine gun pool will be issued in the tokens deposited by the user. When depositing funds, the user will receive a corresponding share of mtoken. The value of mToken is equal to the sum of the user’s principal and the income during the deposit period.
yAxis (YAX)
yAxis is a DeFi income aggregator designed to obtain the best income through capital allocation. Unlike other relatively simple revenue aggregators, yAxis will transform basic assets according to demand while deploying strategies.
As for the strategy operation mechanism, we can understand yAxis as a DAO-based liquidity mining experiment. YAX holders will vote on a regular basis to determine the strategy of yVault/aggregator in order to better allocate the use of user funds.
DFI.money (YFII)
Since we mentioned Yearn Finance at the beginning, we have to introduce its most successful fork project DFI.money. In the early days of DeFi last year, the surge of YFI and YFII attracted countless attention from inside and outside the circle.
Due to the fork, the core business logic of DFI.money is the same as Yearn Finance. However, in the development of the past six months, DFI.money has also stepped out of its own path. For example, the latest version of the front-end has completed ETH and BSC. , The integration of the Heco version entrance makes it convenient for users to participate in mining through a unified entrance.
Stone (STN)
Stone is a platform that provides cross-chain liquidity and income aggregation around PoS assets. It is built on Substrate. It focuses on providing liquidity to mortgage assets and providing simple and easy-to-use stable income products.
At present, Stone has launched the USDC and USDT stable currency income strategy, and the liquid PoS asset has also launched the Stafi rETH income strategy.
Odaily Planet Daily has previously interviewed the Stone project party. For more details, click “Online soaring 79 times, what is the cross-chain asset aggregator “Stone”? “.
Nord Finance (NORD)
Nord Finance, formerly known as Slick Finance, is a stablecoin mining protocol that currently supports three currencies such as USDT, USDC, and DAI.
Nord Finance’s revenue optimization program, Nord.Savings, will pursue the highest revenue under reasonable risk conditions through stable revenue farming in multiple ecosystems. Users do not need to care about the specific operation of the agreement, and simply deposit stable coins to enjoy the benefits.
YIELD (YLD)
YIELD is a one-stop DeFi investment platform. The project aims to simplify the process of investors participating in DeFi, allowing investors to easily and simply invest in digital assets, smart contracts or agreements through the platform. For users, they only need to deposit assets in YIELD and select the corresponding fund. YIELD will be responsible for finding the best rate of return (APY) in the complex DeFi products, and then provide users with a stable return on investment.
Like the Cook Protocol mentioned above, the funds deposited by users into YIELD will also be managed by professionals rather than a set of algorithms. YIELD promises in its website that it will give users a 12% guaranteed return. As for safety, the user’s principal will be protected by YLD Insurance Fund (YLD Insurance Fund, composed of 1% of APY).
DeepGo (DGT)
The digital asset intelligent investment advisory platform DeepGo is incubated by the professional quantitative team DeepQuant and provides technical support. DeepGo currently mainly serves digital asset management institutions and high-net-worth individuals, providing users with core functions such as risk control and performance optimization. Specifically, DeepGo’s strategic mining will cover multiple strategies such as quantitative transaction custody, option derivatives, DeFi mining, and high-quality project auctions.
One of the highlights of DeepGo is its risk control system. In addition to allowing users to monitor the transaction status of their accounts in real time, users can also set the risk control parameter thresholds agreed with the quantitative team. The tracking errors of related historical performance will also be triggered by early warning notifications. The solution solves the problem of human trust.
to sum up
One day in the world, one year in the currency circle; one day in the currency circle, one year in DeFi. The bull market is deep, and new DeFi products emerge every day. It is difficult for this article to cover all the same theme projects in the entire ecology.
Looking ahead, with the further development of DeFi, more funds will continue to flow into DeFi in the future, and the “one-stop DeFi investment” track is bound to continue to have a large number of new projects.
For users, although such services can greatly reduce the threshold for participating in DeFi, they still need to make sufficient preparations when selecting specific products. First, it is necessary to confirm whether the project contract has been audited by a third-party independent agency, and second, it is necessary to pass the project The lock-up amount and running time are used to evaluate the risk status from the side. Third, we must understand the operation mechanism of the specific project to determine whether there are other risk factors outside the contract level. Fourth, compare the benefits and necessary consumption (such as gas fees) to calculate the actual revenue status. ……DeFi is tempting, but you must put risk control first.
