The Problem
The world has no universally accessible, censorship-resistant method for wealth creation.
Last updated
The world has no universally accessible, censorship-resistant method for wealth creation.
Last updated
The biggest problem and opportunity in wealth management is that it's too damn hard to make your money, make money for most people.
Investors lack accessible, low-risk, high-yield, and liquid digital asset investment opportunities due to:
the complexity of managing crypto-native yield strategies;
the ambiguity of regulatory requirements regarding crypto custody, trading, and investor onboarding and;
the inability of most funds to minimize volatility and other market risks.
Such products would benefit modern retail and institutional investors and could also serve as primary wealth-generation tools for billions of people around the world who lack access to basic financial services like savings accounts and retirement plans like pensions or 401(k)s.
DeFi protocols require too much work to use, resulting in limited adoption and returns.
Yield generation and trading lead DeFi's use cases, with liquid staking and lending protocols dominating. These account for 75% of all value locked across blockchain networks, popular for their simplicity and automatic, competitive yields.
The need for 'smart money' that can automatically adjust to market risks and maximize yields is increasingly critical.
This is vital for broadening access to global wealth creation & DeFi participation.
Most yield-bearing tokens, such as stETH, or DeFi-native instruments, such as Uniswap LP positions, provide historically strong returns in contrast to the vast majority of TradFi instruments readily available for retail investors. But they introduce:
Impermanent loss and exposure risk associated with the base asset if it should go down in price (e.g., ETH for stETH).
Earning inflation-based yield (i.e., token emissions) that naturally lowers the value of the asset over time.
Varying liquidity issues depending on the asset's overall market adoption across DEXs, CEXs, and blockchain networks.
Acquisition complexity that occasionally requires the asset holder to go through a series of steps to gain exposure to the asset at all (e.g., Uniswap LP positions).
Doesn't adjust to waning yield production due to market maturation (e.g., stETH cannot adjust its APY if ETH staking rewards or network fees decrease; it simply becomes less competitive).
The lack of structured products that limit risk, achieve yield targets, and ensure security and compliance is a significant market gap in the rapidly growing digital asset sector, which is projected to reach . Even worse, the entire digital asset market lacks the uniform DeFi trade execution layer necessary for such a massive market opportunity to be fully realized.
However, retail investors face limited access to comparable, reliable opportunities, with options mainly including staked Ethereum (stETH), USDe, and Aave tokens (a-Tokens). None of these assets are principal protected, their returns are highly variable, and they all suffer .
