In the choice between active and automated asset management, dHEDGE doesn’t make you take sides

In the choice between active and automated asset management, dHEDGE doesn’t make you take sides

Cryptocurrency
July 6, 2022 by Editor's Desk
254
The world of decentralized finance (DeFi) offers users many pathways to explore the burgeoning space of crypto and digital assets. That being said, it sometimes feels as though there are too many options, and for those only starting out their journey into crypto and DeFi these options can get overwhelming very quickly.   Understanding all
In the choice between active and automated asset management, dHEDGE doesn’t make you take sides

The world of decentralized finance (DeFi) offers users many pathways to explore the burgeoning space of crypto and digital assets. That being said, it sometimes feels as though there are too many options, and for those only starting out their journey into crypto and DeFi these options can get overwhelming very quickly.

 

Understanding all the underlying technologies and financial models behind all the dApps, protocols, and coins adds a whole new layer of confusion. Should a crypto-curious investor choose to go forward, there is a lot of research required and competing opinions to consider pretty much every step of the way.

 

One such option that an investor is likely to come across early on is the choice between active or automated asset management for their crypto stash. So what is the difference between the two?

 

Active management is likely something you’ve heard of before, as it involves the presence of an asset manager to oversee funds and how they are put to work. Automated management, on the other hand, involves an algorithmic or program-based approach to investment. Through an online platform or phone app, users can entrust their funds to an algorithm which then invests these funds in line with its algorithm, often with options for customization.

 

In the DeFi space, most programs or user-facing applications favor one approach over the other. While both active and automated management have their advantages, it can be hard for crypto amateurs to know whether they are making the right decision. dHEDGE is a one-stop shop for digital-asset management offering both automated and active routes. Pairing investors with savvy asset managers, dHEDGE is built for those in need of a human touch to balance out the purely automated-investment strategies seen on other DeFi platforms or aggregators.

 

The platform is built with both investors and managers in mind, providing a non-custodial gateway to a wide assortment of decentralized protocols and blockchains. The dHEDGE platform is built on Ethereum, allowing asset managers to trade synthetic crypto, FX, commodities, and equities through the zero-slippage model of Synthetix.

 

dHEDGE aggregates protocols like Uniswap, 1inch, and AAVE all on a single interface through the Polygon and Optimism Layer-2 blockchains. This allows experts and managers to have access to the same toolkit to maximize their effectivity. For users looking for a dedicated active asset manager, dHEDGE uses a Sortino ratio-based ranking to pair up investors with managers that best suit their needs and goals.

 

Further expanding its toolbox, Toros is the latest major feature launched on the platform. Powered by dHEDGE, Toros is an incubated protocol built for the Polygon blockchain that operates within its interface and as a standalone protocol. Toros unlocks maximized inflation hedging, yield, and liquidity capabilities for the Polygon ecosystem through dedicated vaults, extending services previously available to just managers to a wider community.

 

By offering both social management opportunities and robust automated investment options, users and managers don’t have to sacrifice approaches for the sake of convenience. Rather, dHEDGE unlocks the possibility to utilize the widest range of services available to offer flexibility, choice, and knowledge to the DeFi ecosystem. As more investors look into crypto, either entering from the traditional banking realm or forgoing it altogether, it’s vital to guide audiences at all levels of financial know-how to explore DeFi and push it further into the mainstream.