Keeping up with DeFi can be impossible
What if you could leave it to the experts & follow them instead
That's what crypto asset management protocols aim to do.
Here's a breakdown of asset management in crypto and how it works 🧵
What if you could leave it to the experts & follow them instead
That's what crypto asset management protocols aim to do.
Here's a breakdown of asset management in crypto and how it works 🧵
The DeFi Learning curve.
The biggest barrier to DeFi is the steep learning curve.
There are so many protocols & tokens, most require hours of research to understand.
What should you invest in? What is the best strategy?
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The biggest barrier to DeFi is the steep learning curve.
There are so many protocols & tokens, most require hours of research to understand.
What should you invest in? What is the best strategy?
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Keeping up with DeFi is hard.
DeFi moves a mile every minute.
• There’s so much of noise in DeFi
• Differentiating good from bad is so tough
• Very few have the time to keep up
Despite spending hours, most people fail to find the right strategies & plays.
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DeFi moves a mile every minute.
• There’s so much of noise in DeFi
• Differentiating good from bad is so tough
• Very few have the time to keep up
Despite spending hours, most people fail to find the right strategies & plays.
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Follow the Pros
I’ve spoken a lot about watching the pros.
The pros understand DeFi 1000x better than newbs. What if you leave it to them instead?
Crypto Asset management platforms are doing exactly this.
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I’ve spoken a lot about watching the pros.
The pros understand DeFi 1000x better than newbs. What if you leave it to them instead?
Crypto Asset management platforms are doing exactly this.
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Asset Management
Asset management is the practice of increasing wealth over time by acquiring, maintaining, and trading investments.
In theory, experts curate strategies & assets to help regular people beat the market.
Think hedge funds.
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Asset management is the practice of increasing wealth over time by acquiring, maintaining, and trading investments.
In theory, experts curate strategies & assets to help regular people beat the market.
Think hedge funds.
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It's the same in crypto.
I’ve broadly divided web3 asset management into
• Public asset management
• Private asset management
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I’ve broadly divided web3 asset management into
• Public asset management
• Private asset management
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Public asset management
Public asset management enables a user to create investment strategies & make it available to everyone.
These platforms incentivize experts to curate & share investment strategies, typically in the form of indexes.
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Public asset management enables a user to create investment strategies & make it available to everyone.
These platforms incentivize experts to curate & share investment strategies, typically in the form of indexes.
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These indexes contain a range of assets & strategies.
Users can buy these indexes & easily invest in expert selected strategies.
Instead of spending hours struggling to navigate through DeFi, regular folks can just buy into curated strategies
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Users can buy these indexes & easily invest in expert selected strategies.
Instead of spending hours struggling to navigate through DeFi, regular folks can just buy into curated strategies
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Private Asset management
Private asset management protocols help private groups pool money together, invest & manage funds.
For example, they help DAOs with treasury management. These aren’t open to everyone.
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Private asset management protocols help private groups pool money together, invest & manage funds.
For example, they help DAOs with treasury management. These aren’t open to everyone.
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These greatly benefit private communities in crypto.
Using these protocols, DAOs & groups with aligned visions can raise money & manage investments, with ease & at a low cost.
With that, let’s dive into some of the existing protocols.
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Using these protocols, DAOs & groups with aligned visions can raise money & manage investments, with ease & at a low cost.
With that, let’s dive into some of the existing protocols.
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@BabylonFinance
Babylon is a community-led asset management protocol that enables users to invest in DeFi together.
Babylon is
• Built on Ethereum
• Transparent + permissionless
• Non custodial
• Governed by the community
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Babylon is a community-led asset management protocol that enables users to invest in DeFi together.
Babylon is
• Built on Ethereum
• Transparent + permissionless
• Non custodial
• Governed by the community
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@BabylonFinance Babylon aims at leveraging the power of investing as a tribe.
Remember Wall Street Bets & GameStop?
The WSB tribe rallied GME & challenged Wall Street.
What happened next?
The big shots changed the rules & pulled strings to crush it.
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Remember Wall Street Bets & GameStop?
The WSB tribe rallied GME & challenged Wall Street.
What happened next?
The big shots changed the rules & pulled strings to crush it.
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@BabylonFinance Community driven investing needs to be permissionless + censor resistant.
Sounds just like crypto.
A tribe alone isn’t enough.
Only a few know how to kill it in DeFi. You need to incentivize experts to take charge & share their knowledge.
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Sounds just like crypto.
A tribe alone isn’t enough.
Only a few know how to kill it in DeFi. You need to incentivize experts to take charge & share their knowledge.
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@BabylonFinance Babylon lets users create investment communities known as Gardens.
Members can be invited to these communities to deposit capital, suggest strats, vote & earn.
Each Garden has a different investment thesis, risk level & liquidity requirements.
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Members can be invited to these communities to deposit capital, suggest strats, vote & earn.
Each Garden has a different investment thesis, risk level & liquidity requirements.
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@BabylonFinance Incentivizing the community.
Individuals can suggest a Strategy & members can vote on them. Voters & Strategy creators get rewarded based on the performance.
Participants are rewarded based on participation & contribution.
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Individuals can suggest a Strategy & members can vote on them. Voters & Strategy creators get rewarded based on the performance.
Participants are rewarded based on participation & contribution.
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@BabylonFinance By investing together, participants share the gas costs, increase capital efficiency and minimize taxable transactions.
Babylon also allows participants to deposit gas-free in a select group of verified gardens.
Creating a strategy is easy. No code is need.
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Babylon also allows participants to deposit gas-free in a select group of verified gardens.
Creating a strategy is easy. No code is need.
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@BabylonFinance Babylon aims at making DeFi easy, at scale.
• One stop shop with the best strategies & plays
• Spend less time searching for the best plays
• Leave it to the community experts.
• Different theses & risk levels, making it accessible for everyone.
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• One stop shop with the best strategies & plays
• Spend less time searching for the best plays
• Leave it to the community experts.
• Different theses & risk levels, making it accessible for everyone.
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@BabylonFinance $BABL is the native token. It has a max supply of 1M.
$BABL controls:
• Protocol Fees
• System upgrades
• Treasury management
• $BABL rewards program
Here's a great thread by @rossboothr that dives deeper into the tokenomics:
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$BABL controls:
• Protocol Fees
• System upgrades
• Treasury management
• $BABL rewards program
Here's a great thread by @rossboothr that dives deeper into the tokenomics:
https://twitter.com/rossboothr/status/1516111400979951617
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@BabylonFinance @rossboothr Babylon's Key features:
• Own BABL as you invest. Non-inflationary governance token with only 1M supply. BABL mining rewards last for 10 years and are awarded based on the performance of these gardens.
All protocol fees create value for BABL holders
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• Own BABL as you invest. Non-inflationary governance token with only 1M supply. BABL mining rewards last for 10 years and are awarded based on the performance of these gardens.
All protocol fees create value for BABL holders
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@BabylonFinance @rossboothr • Unlocks the true potential of community driven investing
• Saves time & lowers barriers for newbs. Experts are incentivized through earning yield based on success
• Different investment communities for different risk levels (anyone can make a Garden)
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• Saves time & lowers barriers for newbs. Experts are incentivized through earning yield based on success
• Different investment communities for different risk levels (anyone can make a Garden)
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@BabylonFinance @rossboothr @SetProtocol
Set Protocol is a web3 asset management platform that provides financial infrastructure tooling
Set enables managers to create customizable baskets of collateralized assets, known as Set Tokens (ERC20)
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Set Protocol is a web3 asset management platform that provides financial infrastructure tooling
Set enables managers to create customizable baskets of collateralized assets, known as Set Tokens (ERC20)
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@BabylonFinance @rossboothr @SetProtocol Set Tokens follow the manager’s strategy.
Users can buy into the strategy by purchasing the Set token
@BanklessHQ created the Bankless DeFi Innovation Index.
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Users can buy into the strategy by purchasing the Set token
@BanklessHQ created the Bankless DeFi Innovation Index.
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@BabylonFinance @rossboothr @SetProtocol @BanklessHQ It consists of a range of assets & strategies chosen by Bankless.
Users can buy into Bankless’ strategy through buying this set.
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Users can buy into Bankless’ strategy through buying this set.
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@BabylonFinance @rossboothr @SetProtocol @BanklessHQ Managers are incentivized & compensated through streaming fees.
Creating a Set requires you to submit a proposal to the team, meaning that it’s not as easy to create a set, but approved sets are vetted.
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Creating a Set requires you to submit a proposal to the team, meaning that it’s not as easy to create a set, but approved sets are vetted.
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@BabylonFinance @rossboothr @SetProtocol @BanklessHQ Set's Key Features:
• Very easy to buy into a strategy & index
• Clean UI, easy to understand
• Managers are incentivized through fees
• Managers manage the set, holders cannot vote on direction
• No native token
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• Very easy to buy into a strategy & index
• Clean UI, easy to understand
• Managers are incentivized through fees
• Managers manage the set, holders cannot vote on direction
• No native token
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@BabylonFinance @rossboothr @SetProtocol @BanklessHQ @enzymefinance
Enzyme is a DeFi asset management system that funds, DAOs, & investors can tap into.
Enzyme has 4 broad user types.
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Enzyme is a DeFi asset management system that funds, DAOs, & investors can tap into.
Enzyme has 4 broad user types.
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@BabylonFinance @rossboothr @SetProtocol @BanklessHQ @enzymefinance 1. DAOs
DAOs often struggle with treasury management & transparency.
Enzyme allows DAOs to program risk management policies & delegate trading & investment to a specific member.
The assigned member has very specific permissions & all actions are visible & accounted for.
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DAOs often struggle with treasury management & transparency.
Enzyme allows DAOs to program risk management policies & delegate trading & investment to a specific member.
The assigned member has very specific permissions & all actions are visible & accounted for.
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@BabylonFinance @rossboothr @SetProtocol @BanklessHQ @enzymefinance 2. DAO token holders
There’s little transparency for DAO members. Enzyme allows holders to monitor the treasury & it’s actions
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There’s little transparency for DAO members. Enzyme allows holders to monitor the treasury & it’s actions
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@BabylonFinance @rossboothr @SetProtocol @BanklessHQ @enzymefinance 3. Vault Managers
Enzyme allows anyone to build & monetize strategies.
Enzyme integrates with a variety of DeFi platforms & enables managers to create vaults with easy to use building blocks.
4. Depositors
Users can buy & sell shares of different investment strategies.
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Enzyme allows anyone to build & monetize strategies.
Enzyme integrates with a variety of DeFi platforms & enables managers to create vaults with easy to use building blocks.
4. Depositors
Users can buy & sell shares of different investment strategies.
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@BabylonFinance @rossboothr @SetProtocol @BanklessHQ @enzymefinance Public, private & hybrid vaults
Users can create public, private or hybrid vaults.
• A public vault is open to everyone.
• Investment clubs can create hybrid vaults with certain requirements & settings
• DAOs managing their treasuries can create private vaults
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Users can create public, private or hybrid vaults.
• A public vault is open to everyone.
• Investment clubs can create hybrid vaults with certain requirements & settings
• DAOs managing their treasuries can create private vaults
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@BabylonFinance @rossboothr @SetProtocol @BanklessHQ @enzymefinance Enzyme's Key Features
• DAO focus ( DAO tooling is limited)
• Anyone can easily create vaults
• Lots of customization
• Public, private & hybrid vaults for different use cases
• Managers manage the vault, holders cannot vote on direction
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• DAO focus ( DAO tooling is limited)
• Anyone can easily create vaults
• Lots of customization
• Public, private & hybrid vaults for different use cases
• Managers manage the vault, holders cannot vote on direction
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@BabylonFinance @rossboothr @SetProtocol @BanklessHQ @enzymefinance @SyndicateDAO
Syndicate is an asset management program that allows users to create web3 investment clubs for both on & off chain investments.
Investment clubs are essentially groups that pool & invest capital
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Syndicate is an asset management program that allows users to create web3 investment clubs for both on & off chain investments.
Investment clubs are essentially groups that pool & invest capital
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@BabylonFinance @rossboothr @SetProtocol @BanklessHQ @enzymefinance @SyndicateDAO Any wallet can become an investment club.
Syndicate allows any wallet to become an investment club DAO, where anyone can deposit money
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Syndicate allows any wallet to become an investment club DAO, where anyone can deposit money
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@BabylonFinance @rossboothr @SetProtocol @BanklessHQ @enzymefinance @SyndicateDAO Syndicate is focused on private groups.
Syndicate primarily focuses on helping individual groups & projects raise & management funds.
Instead of creating public investment strategies, Syndicate is a tool to easily create DAO investment clubs (private asset management)
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Syndicate primarily focuses on helping individual groups & projects raise & management funds.
Instead of creating public investment strategies, Syndicate is a tool to easily create DAO investment clubs (private asset management)
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@BabylonFinance @rossboothr @SetProtocol @BanklessHQ @enzymefinance @SyndicateDAO Syndicate makes private asset management a lot cheaper & faster, allowing these clubs to be created with a few clicks.
It also allows for the easy creation of legal entities.
Syndicate provides real time dashboards for investment clubs to track & manage investments.
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It also allows for the easy creation of legal entities.
Syndicate provides real time dashboards for investment clubs to track & manage investments.
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@BabylonFinance @rossboothr @SetProtocol @BanklessHQ @enzymefinance @SyndicateDAO Syndicate's Key features:
• Cheap, fast creation of Investment clubs
• Very easy to use
• Legal entity creation
• Real time dashboard
• Private asset management
• No token
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• Cheap, fast creation of Investment clubs
• Very easy to use
• Legal entity creation
• Real time dashboard
• Private asset management
• No token
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@BabylonFinance @rossboothr @SetProtocol @BanklessHQ @enzymefinance @SyndicateDAO Syndicate's Key difference
It's focused on investment club DAO creation instead of publicly available investment strategies like the other asset management protocols.
Also, there's no token, which means that there’s no community governance.
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It's focused on investment club DAO creation instead of publicly available investment strategies like the other asset management protocols.
Also, there's no token, which means that there’s no community governance.
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@BabylonFinance @rossboothr @SetProtocol @BanklessHQ @enzymefinance @SyndicateDAO With that, you now have a solid overview of the web3 asset management space.
These asset management platforms are a great way to leverage experts' knowledge.
You can look at managers' strategies to get an insight into some of the better plays in DeFi.
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These asset management platforms are a great way to leverage experts' knowledge.
You can look at managers' strategies to get an insight into some of the better plays in DeFi.
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@BabylonFinance @rossboothr @SetProtocol @BanklessHQ @enzymefinance @SyndicateDAO Based on your needs & requirements, you can choose one of these platforms.
Even if you don't use them, they're a great way to research different strats chosen by experts.
It's a great way to save time in your research process.
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Even if you don't use them, they're a great way to research different strats chosen by experts.
It's a great way to save time in your research process.
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@BabylonFinance @rossboothr @SetProtocol @BanklessHQ @enzymefinance @SyndicateDAO And that's it. I hope you found this breakdown of the web3 asset management space useful.
• Please retweet this post ( spent many hours on this, pls help spread it ty)
• Follow me @Cov_duk for actionable insights & ez crypto breakdowns
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• Please retweet this post ( spent many hours on this, pls help spread it ty)
• Follow me @Cov_duk for actionable insights & ez crypto breakdowns
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