A crucial turning point in the history of finance was the emergence of decentralized finance (DeFi). It made the headlines in the summer of 2020 by establishing its extensive features and deliverables, which offered the ability to help various industries and revolutionize the financial space.

Each day, new creators and developers brainstorm and create more efficient platforms for users, exploring the DeFi space, and Desapce Protocol is one such example.

## What is the DeSpace Protocol?

Let us put it in simple terms. DeSpace protocol, one of the most comprehensive DeFi aggregators in the crypto industry, was introduced recently in 2021. The platform gives a distinct possibility to bridge the gap between celebrities and their enormous fan following by combining NFTs and DeFi onto one platform via a multi-chain aggregator.
The primary goal of this platform is to develop a dependable, user-friendly, and secure ecosystem for the DeFi business that will benefit all users and the NFT cards involved. 

DeSpace is based on DeChain. It is a Layer-2 blockchain system that joins dissimilar chains and enables simple transactions across numerous bridges. With every transaction, users receive DES, a native token holding a tremendous amount of platform value. With a platform like this, celebrities and creators can bring their NFTs to their fans in a seamless manner. Be it musicians, actors, painters, or artists of any kind.

## Is DeSpace a Promising Platform?

The platform has an exceptional interface that is simple to comprehend and operate with features that keep users engaged. What sets DeSpace apart is its adaptability, as the cross-chain platform offers DeFi and NFT protocols that may be used with different blockchains. Some other perks DeSpace offers are the protocol's complete decentralization, attention to privacy, and emphasis on audibility, it is a good choice for all kinds of investors. 

It also allows users to execute various DeFi activities, such as Yield Farming, Lending, Staking, Mining, and so much more, thanks to DeLand and DeSwap. By enabling users to improve their experience by raising mining yields or obtaining space drops for Non-fungible Tokens (NFT) that they own, the platform offers a solution for the lack of utility behind NFT operations.

## Conclusion

The DeSpace platform has undoubtedly set a precedent in developing a dependable, user-friendly, and secure system in the DeFi sector for each user. 
However, there are unwanted risks associated with any new, promising technology. Therefore, it is advised to do extensive research and grasp the implications before operating on any new project or platform.





The DeSpace platform has undoubtedly set a precedent in developing a dependable, user-friendly, and secure system in the DeFi sector benefiting each user and the NFT cards involved.

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DeFi 2.0 - DeSpace DeFi Protocol  | aarna Blogs 

DeFi 2.0 - DeSpace DeFi Protocol 

With the pandemic drifting away after a prolonged period, the businesses and incomes are coming back on track, and people are looking forward to resuming their investment goals rapidly. When you see the market, the crypto industry is on a trend, gravitating investors’ interest. However, the account of being a new concept amongst people and beginner investors in maximum parts of the world is a typical mindset of the majority to consider it unstable and/or unreliable.

Comparing the strategies people have been using for a long time in the market, one would fear losing his money in the volatile crypto market as they neglect this domain to invest and are influenced by negative reviews of the numerous amateur investors. One needs a balanced strategy to build his own experience in the crypto investment market with low-risk investment and significant profits. Here, DCA kicks in!

Dollar-cost Averaging (DCA) is a reliable strategy used by market investors for a long time. DCA works by minimizing the risk of investing or purchasing assets along with high price volatility. It focuses on investing a predetermined amount of money at regular intervals regardless of asset price or ups and downs of the market, instead of investing a lump sum amount at once. To analyze the strategy of Dollar-cost Averaging thoroughly, we will walk you through a simple example.

**For example, the initial price is $100 for X cryptocurrency, and you choose to invest $100 every week.

Week 1: $100 per coin & you buy 1 coin. Total invested = $100

Week 2: $50 per coin, you buy 2 coins. Total invested = $200

Week 3: $200 per coin, you buy 0.5 coins. Total invested =$300

At the end of 3rd week, you now own 3.5 coins of X at an average price of $85.71 per coin.**

It is how Dollar-cost Averaging works. By investing the same amount at every pre-decided interval of time, no matter what the market is doing, you will buy more cryptocurrency when the market is low and less when it is high. On average, you will get fair prices and significant overall profit. The fundamental part lies in investing on a fixed schedule which will build you a strong investing position in the near future.

On the contrary, a few groups of investors would argue that the best way to score high gains is to invest a lump sum amount of money at once. It is true, but it does not recognize an individual’s tolerance for risk. Historical statistics clearly highlight that lump sum investments always exceed the return of partial investments, however, that comes at an extensive risk. When markets go up, using your lump-sum investment money to buy crypto and generate profit takes full advantage of market growth. But it is impossible to time the market with accurate precision, especially for the beginners in the market. This strategy would give them a prominent exposure to the crypto market, accompanying a massive risk.

It is too hard to determine the market’s structure at any point in time. It can either be a span of distribution where the asset is about to fall big, or it can be an accumulation span where market giants buy plenty of coins and surge the asset high. No matter which situation the market falls into, it puts the investors at risk. For some, the loss of an investment may be a manageable blow, but for bulk of investors or beginners, such a loss can be a harsh blow to their bread and butter. Dollar-cost Averaging helps you to put your foot in the market without the risk of losing it all. It takes advantage of the market’s natural volatility by lowering the average price you pay for the crypto.

People normally accumulate a lump sum amount and invest when the time is appropriate. It would be great if we could buy a cryptocurrency when the market is low and sell it when it is comparatively high. Regrettably, investors endeavor to ‘time the market’ often has an adverse effect, and they eventually buy and sell with poor timing. Dollar-cost Averaging helps you invest a fixed amount regardless of the market’s fluctuations, aiming to avoid your temptation to time the market, along with shielding your losses in case of sudden market decline.

Dollar-cost Averaging (DCA) is a reliable strategy used by market investors for a long time. DCA works by minimizing the risk of investing or purchasing assets along with high price volatility

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Dollar-Cost Averaging

# Crypto Wealth Management

## The need

In crypto wealth management, there are more than one sub asset-classes to invest in - Digital Currencies, DeFi Coins, Tokens, NFTs, etc. Managing multiple assets on-chain is not only a challenge with the new entrants but also with the seasoned crypto investors. With the rise of crypto structured products and assets, wealth management is also becoming increasingly necessary. It is not very much different from traditional wealth management. However, with the advent of Web3, the crypto wealth management space is being disrupted in many ways. One of which is DeFi or Decentralised Finance. Besides, autonomous wealth management protocols are trying to remove the need. But before we delve deeper, it is important to understand how it works.

## Crypto wealth managers

The investment market for cryptos never sleeps. There appears to be a need to constantly track your portfolio and be mindful and observant of the insights to prevent losses. Traditionally, investors park aside a certain amount for investment and trust their wealth managers to choose the best investment plans/vehicles for them. Asset managers are also emerging in this space to support crypto wealth management. Interestingly, a lot of traditional wealth management firms are also entering the space and tying up with existing blockchain projects. Investment in crypto is increasingly becoming a part of the overall portfolio of an investor. Another aspect of upcoming crypto wealth management is risk mitigation through derivatives. Crypto wealth managers are coming up with structured products of interesting combinations of several underlying crypto assets. 

## Volatility and risk hedging

Market volatility is inherent to all investments and so is crypto. Often confused as the downward risk only, volatility is also about the upward swing and potential gains. In order to minimise the downward risk, Crypto wealth management firms are always on the go to create safer and balanced investment plans. The saying, “do not put all your eggs in one basket” applies to crypto investments as well. Besides volatility, there might be other kinds of risks involved like, transactional risks and the lack of regulation in the crypto market. Crypto wealth management involves strategising ways to minimise these risks in the market. Liquidity management, diversification of sub-asset class and insights based investment plans become evidently necessary. 

## Conclusion

Globally the crypto wealth management industry is expected to grow at a 25% CAGR. Currently the market size is more than 600 million USD. And if we compare this number to the number of retail investors putting aside their wealth in a crypto based portfolio, one can see we are simply scratching on the top. Institutional investors are also entering this space by striking partnerships.

Web3 is knocking around the corner and there is a rise in autonomous, decentralised crypto wealth management platforms which help you track your portfolio across public blockchain networks. Some provide you with deep insights from the market to make an informed investment. DeFi is eliminating the need for an intermediary to manage and grow your crypto wealth. It is not so far when crypto wealth management will be a common thing like traditional investment and wealth management. There will be several projects providing best crypto management services to retail investors. 

## FAQs

1: What is wealth management ?
Ans: Wealth management is an investment advisory service that helps investor manage their wealth by investing into balanced portfolio.

2: What is DeFi ?
Ans: DeFi stands for Decentralized Finance. This is an emerging space where investment and financial activities can be done without involving any central authority or intermediary.

3: What are Asset Management Protocols ?
Ans: Blockchain projects that help manage crypto assets. Check https://www.aarna.finance/ 


Crypto Wealth Management is not entirely different from traditional Wealth Management, but DeFi is disrupting this space for good. Explore the need for it and how it is done.

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Crypto Wealth Management is evidently the future in order to experience sustained growth in crypto wealth

Crypto Wealth Management

Over the years, the enormous growth of bitcoin and blockchain has been phenomenal. Decentralised Finance (DeFi), a blockchain-based finance platform that eliminates centralised financial middlemen is the prime reason for this rapid growth.

Although being decentralised, it nevertheless provides investors with multiple alternatives for passive income, making it unique. Liquidity mining is one of these methods.

What exactly is liquidity mining, and how might it help DeFi? Let us understand this further.

## What is Liquidity Mining?
Liquidity mining is an investing approach in which DeFi protocol participants donate their crypto assets in order to make it easier for others to trade on the platform. Participants receive a percentage of the platform’s fees or newly created tokens in exchange for their contributions.

Now, because a DEX demands liquidity to facilitate trading between distinct token pairs, this incentive technique allows users to provide liquidity to help facilitate those trades. It means that the majority of liquidity pools are between trading pairs, with users depositing one of two cryptocurrencies depending on the pool.

In 2020, the compound received a positive response after unveiling the DeFi Liquidity Mining concept. Total value locked (TVL) for liquidity mining has hovered around $97 billion after its inaugural.

$97 billion! Isn’t the amount huge? But that is major because anyone can adopt this method. It is also one of the key reasons for its appeal among trade participants.

## What are some benefits of liquidity mining?
Liquidity mining has turned out to be quite a beneficial investment strategy. It not only aids the liquidity providers but also, the DeFi platforms and the blockchain community. Let’s have a look at some of its benefits down below.

**1. Distribution of Native Tokens**

Providing liquidity mining gave both institutional and low-capital investors a fair probability. If you put money into a liquidity pool, you may receive benefits in terms of native tokens that you can use to vote, depending on the protocol and farm parameters.

Although liquidity mining eliminates bias, it is imperative to remember that providing tokens to liquidity providers does not remove token distribution disparity. The premise of token distribution remains the same: the bigger the investment, the higher the return.

**2. Open Governance**

Given that everyone can partake in liquidity mining regardless of their stake, anyone can also acquire governance tokens and hence vote on project development proposals and other important decisions taken by stakeholders. As a result, a more inclusive paradigm arises, in which even tiny investors can contribute to the growth of a marketplace.

**3. Benefiting DeFi**

As participation in liquidity mining is compensated, the DEX’s native token can benefit hugely from the cash inflow into the protocol. Developers and their DeFi innovators are becoming incredibly interested in this engagement strategy.

Traditionally, start-ups were limited to funding their projects, but community incentivization offers an unusual alternative to establish traction. More participants will join, and the space will grow as long as the benefits make sense and the protocols give more than sufficient security.

## The Bottom Line
The blockchain industry is still emerging, and it remains to be identified whether liquidity mining will prove to be successful over the long term crypto investment strategy. You should be keen to put your money in liquidity pools if you have a solid understanding of liquidity mining and its inherent risks and rewards. High yields that bolster your portfolio and allow you to earn continuous passive income are possible with the ideal method. While other passive investment strategies may have advantages, liquidity mining is relatively easy to implement.

Liquidity mining is an investing approach in which DeFi protocol participants donate their crypto assets in order to make it easier for others to trade on the platform. Participants receive a percentage of the platform’s fees or newly created tokens in exchange for their contributions.

13 July 2022

2 min read

What is the DeSpace Protocol?

Is DeSpace a Promising Platform?

Conclusion

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