If you were one of the early adopters of cryptocurrency, you might remember the days of manual portfolio management, when traders would enter data into a spreadsheet.
Back then, it was quite simple. There wasn't much to do except buy and sell on a single crypto blockchain. Portfolio management didn't require a lot of time or effort.
But things have quickly changed with the arrival of decentralized finance, and now there are so many options. Portfolio management under the defi protocol has become far more complex, and technology hasn't kept pace with the growth of the defi space. There is a need for technology to support the infrastructure being put into place as the industry grows.
Developers have answered the call, however, and now there is a new generation of portfolio trackers emerging to meet market needs, especially for the defi protocol. Not all dApps are equal, and many offer different features to suit different trading purposes.
Dexfolio has designed its app to offer a superior user experience through its streamlined dashboard. Active users will find tracking their portfolios easy, with many features only a tap away from the home screen, while beginners will find the dashboard easy to navigate.
Apart from choosing one that offers the features you need, it's important to select a dApp that has a great dashboard for ease of use and a good user experience. As many traders would agree, a poorly designed dashboard is a frustrating, time-consuming exercise in confusion. A good design makes all the difference when it comes to easy portfolio management.
But before we dive into what makes a great dashboard experience, let's take a quick look at some basics.
Just as investors in the real world have an investment portfolio, digital investors also have a portfolio that contains a list of their investments. Defi stands for decentralized finance, and a defi portfolio is one that consists of defi projects.
A good dApp dashboard makes it easy to keep track of what's happening in a defi portfolio, enabling users to make decisions based on reliable information.
Defi trackers all offer different features, but typically, you would be able to track the following common projects:
Liquidity pools are available for lenders and borrowers to connect with each other. Lenders receive rewards (often in token form) in exchange for borrowers being able to use the liquidity that they provide to the liquidity pool. Each liquidity pool is governed by its own smart contract or protocol.
Yield farmers stake their tokens in yield farms for rewards; they often receive more of the same token that they staked. Rewards are determined by the specific rules of the farm protocol or smart contract. Yield farming is a relatively safe way of earning passive income but as with most defi investment opportunities, there are risks.
Staking works in much the same way as a bank account, but in defi, staking pools and staking-as-a-service providers run nodes for decentralized proof-of-staking (PoS) protocols for crypto investors.
Defi margin trading works much the same as margin trading in the world of centralized finance. It involves using borrowed funds to trade, with the rewards coming in the form of leveraged payouts.
Good asset management tools have some characteristics in common and users should do their homework to make sure they're getting up-to-date technology for the platforms or defi protocols of their choice.
A good defi asset management tool will have all or most of the following characteristics:
Many asset management tools now offer automated functions such as rebalances, collateralization, and liquidation that don't require input from users, instead being governed by a smart contract or protocol that sets the rules.
Tools should be available to anyone regardless of their location or income.
Some projects are able to connect to other defi projects, creating a network of opportunities for investors.
Truly decentralized asset management tools are non-custodial, meaning that the owner retains possession of the asset at all times. Assets are usually stored in wallets that link to asset management tools.
Connection between users often occurs via wallet addresses, meaning that sharing identities is optional.
Dexfolio supports the Ethereum network, Binance Smart Chain and Polygon defi protocols. The app comes with the Uniswap and Pancakeswap exchanges already built in, but other exchanges can be easily added.
Crypto traders can check their positions, connect unlimited wallets, and see portfolio data in one place. They can also track tokens and receive token alerts, manage asset holdings, and collect a transaction history for tax purposes.
One of Dexfolio's special features is its Intelligent Alerts system that tracks token prices.
In previous apps and even many current ones, token alerts are set at a specific price point. Moreover, alerts have to be set manually for each coin, each time the coin passes the alert point in either direction. This is time-consuming and tedious, especially for active users who have a complex portfolio or a large number of token holdings.
Dexfolio aims to solve this problem with its Intelligent Alerts system. An average price for each asset is calculated (including the price paid for the initial investment), then alerts are only sent out when the price change hits a certain percentage of the average price. This is more meaningful than a single value that has to be changed once its threshold has been crossed.
This handy feature makes the Dexfolio mobile app one of the industry-leading app dashboards, along with its sleek user interface and ability to deliver market data in real time.
Users can receive reliable information in real time through Dexfolio's integration with Chainlink, which provides cross-chain tracking and price feeds through their decentralized oracle network (DON).
With Chainlink Price Feeds, users can track their portfolios and access secure and reliable benchmarks through an aggregation of prices in both centralized and decentralized exchanges.
Dexfolio's development of its industry-leading dashboard doesn't stop there. Continued community consultation has revealed other ways it can grow to meet industry needs and it has plans to integrate or create other supported products to add to its suite. That has to be good news in an industry that needs what Dexfolio has to offer.
Yes, you can track liquidity pools based on the Ethereum network protocol, the Binance Smart Chain protocol, or the Polygon chain using the Dexfolio app.
Dexfolio has Pancakeswap already built in, with the ability to onboard other platforms on the BSC protocol.