Asset management
Decentralized finance
DeFi (or "decentralized finance") is an umbrella term for financial services on public blockchains, primarily Ethereum. DeFi is global, peer-to-peer, pseudonymous, flexible, fast, open to all, and transparent. This is a good place for financial assets that, if properly managed, can be multiplied.
Protocols
The DeFi space provides many opportunities to generate returns. Asset management protocols allow investors to leverage these opportunities. The most effective types of such protocols these days are yield aggregators and one-stop platforms.
Yield aggregators automate the process of generating profit and reinvestment, while one-stop platforms allow asset managers to work together with investors. The Stability Platform tries to cover both of these types of capabilities, combining and complementing them with other features.
Sources of profit
If we consider the main sources of income in DeFi that are used in asset management, then these are:
- Supply income and rewards on lending and collaterized debt protocols (CDPs)
- Swap fees in decentralized exchanges (DeXs) for liquidity providers
- Liquidity farming rewards (farms, gauges)
- Asset price growth
In recent years, profitability in lending and CDP has been low, but profitability in the area of liquidity provision has been consistently decent. Investing in assets and waiting for crypto prices to rise also goes well with making money by providing liquidity.
As a result, liquidity mining and related tasks are the core work of a modern asset management protocol.