As decentralized finance (DeFi) expands into a market of over $ 10 billion, infrastructure builders are devising ways to reduce associated risks.
Trustology
Announced Wednesday, Trustology, a custodian and wallet services provider, has added a "DeFi Firewall" to its suite of investment institutional. The “Firewall” is basically a set of rules or filters selected by a fund, which specifies which DeFi protocols or decentralized exchanges they consider kosher.
Investors from a more traditional or institutional background are showing their willingness to participate in the new opportunities offered by DeFi. At the same time, they need to be sure that the funds are managed as prudently as possible.
Trustology, which is supported by ConsenSys and Two Sigma Ventures, has already created native tools to prevent customers from sending their crypto assets to the wrong addresses or exchanges, and now these tools have also been extended to DeFi smart contracts, Alex Batlin explained. , CEO of Trustology.
"A fund may decide that it is allowed to use Uniswap but not KyberSwap, for one reason or another," said Batlin. "Or it might decide that MakerDAO's USDC or DAI are allowed but not USDT and that these funds can only ever circulate within an allowed set of addresses - now they can prove to their investors that anything is possible."
Institutional investors much courted in the Defi
Addressing institutional investors who have mostly remained on the sidelines of the emerging trend in yield farming is something other players in the industry are doing as well. Just last week, the Chicago DeFi Alliance launched a Liquidity Launchpad program to bring “informed gamers and professionals” to the DeFi space.
The next step on Trustology's roadmap will be the introduction of "DeFi Notifications," Batlin said. “One of the problems with blockchains is the lack of a notification service, so you need to constantly monitor the blockchain to understand it, because if you don't, your positions can be liquidated,” Batlin said.
"We can send you automatic notification via webhooks or email alerts." Further on, the plan is to introduce "DeFi Flows," Batlin added. “So we can detect that an event has happened and have an automatic response to it.
For example, when an event occurs, a broker may want funds automatically sent to Aave to be interest-bearing. " Batlin said both upcoming products will be released in four to six weeks.
So, if institutional DeFi becomes concrete, what form is it most likely to take? “It is more of a family office and very alternative, where an allocation of 10% -15% is estimated,” said Batlin, adding: “We have signed five new funds in the last two weeks and they were all users of the traditional space they had. created crypto funds to focus on DeFi. So it is more about fragmentation than the reallocation of traditional funds ”.
