Introducing Our Latest Research Paper: The Institutional DeFi Trilemma
We are excited to share our latest research paper, The Institutional DeFi Trilemma. This report dives deep into the core pillars of DeFi, offering insights on how to navigate the complex landscape of decentralized finance and find the balance between risk, reward, and capacity.
In this paper, you’ll find an in-depth analysis of the unique challenges and opportunities within the DeFi ecosystem, particularly from the perspective of institutional investors. Our research team examined various DeFi protocols, yield strategies, and risk factors, providing a framework for understanding and optimizing your DeFi strategies.
The Institutional DeFi Trilemma Model
At the heart of this paper is our innovative model, essential for organizations aiming to deploy capital in DeFi effectively. This model addresses three critical dimensions in DeFi: risk, reward, and capacity.
- Risk: DeFi risks are multifaceted and more complex than those in traditional finance. We cover technical risks from smart contract vulnerabilities and protocol designs, as well as economic risks stemming from market dynamics and protocol mechanisms.
- Reward: DeFi rewards, such as staking, liquidity provision, lending rates, and liquidity mining, are explored in detail.
- Capacity: This unique factor determines the optimal capital deployment without significantly diminishing returns or escalating risks, considering liquidity and protocol limitations.
Do you want to know more about these aspects and how to balance them effectively? Eager to learn the best practices for managing risks and maximizing returns? Discover the answers and more by downloading our full report.
