Introduction

Professional DeFi Asset Management is inevitable

Asset Management is a multi-trillion-dollar sector, and we expect that ~$8-19T in assets (both web3-native & real-world) will be on-chain in the near future. There’s a strong need to use on-chain financial rails to manage these assets, and many professional asset managers are already exploring DeFi.
So, what’s stopping the adoption?

Institutional adoption of DeFi is impossible without a professional-grade toolkit

We have worked with 150+ crypto hedge funds, digital asset managers & other professional investors to understand their pain points when using a fully on-chain infrastructure:
  1. 1.
    Lack of liquidity for some trades on DEXes comparing to CEXes or OTC deals via Market Makers
  2. 2.
    Yield farming requires custom integrations with each of the DeFi protocols, which can take months/years and $millions spent on engineering & security audits
  3. 3.
    It’s challenging to create automated trading strategies in DeFi than to build an algo on top of CEX APIs (or CEX aggregators’ APIs)
  4. 4.
    No native sub-account/managed-account logic in DeFi, which means you need to either take full custody, have a shared multisig or use rigid non-custodial vaults
  5. 5.
    Unclear how to manage regulatory and compliance requirements for on-chain interactions
  6. 6.
    Lack of reliable omni-chain infrastructure makes CEXes still a preferred option for cross-chain trading, even for crypto-native funds
  7. 7.
    Lack of on-chain derivatives forces the use of CEXes for hedging & delta-neutral strategies
  8. 8.
    Complex & siloed RWA platforms that lack liquidity provide little benefit for managing real world assets on-chain
While DeFi infrastructure is maturing across the board, it still lacks the comprehensive, institutional-grade tooling that is suitable for professional asset managers.