ApexDao, a decentralized asset management protocol based on the ethereum blockchain, has gone operational. The protocol enables DeFi investors to take complete control of their digital assets and at the same time exposing them to the best investment options available in the DeFi ecosystem.
Decentralized finance (DeFi) has grown over the last two years into a range of platforms on the Ethereum blockchain. This allows lenders, borrowers, and investors to manage bank-related transactions without the need for banks acting as a mediator.
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DeFi operates on accounts that can be accessed by anyone around the globe with just an internet connection. Investors can create, store, access, and transfer any financial product without the need for banks, politics, or brokers. The only thing that investors need is an open-source digital wallet.
Today, around $2 million is secured in the DeFi market. With 205 DeFi projects listed, 193 are operated on Ethereum. Lending dApps have the biggest market share. Moreover, a few platforms permit users to hold leveraged positions, leveraging tokenized trading and margin lending.
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The advent of smart contracts has made lending faster and simpler, making the interaction between borrowers and lenders seamless.
Traditional asset management focuses on the investment and custody of wealth. Direct profit-sharing compels an asset manager to pursue returns. Further, they can hit for a distribution of returns that usually operates smoothly, but has an adverse downside. Moreover, the direct measurement of returns can be clouded, particularly with illiquid assets.
With decentralized asset management, the transaction ledger is public and can be connected to pre-agreed upon market price index. This is all it requires to implement a contract between two parties.
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