In 2019, the digital asset management market ushered in explosive growth. Staking, centralized platform lending, and DeFi financial management played an endless stream. However, many investors have fallen into the trap of “making money and not making money”. How can we avoid this situation? Who is the king of financial management in the currency circle? The new issue of SheKnows opened at 8 o'clock tonight, the theme is "digital asset management", we invited cobo wallet founder Shen Yu, RenrenBit founder Zhao Dong, MakerDao Chinese community leader Pan Chao for everyone to give advice, pointing to the maze.
What is the hot digital asset management? What is the significance of the development of the blockchain industry? Is it appropriate to enter the financial market now? Let's see how the three guests said:
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The sacred fish said:
The blockchain industry is a typical financial industry. It is a benchmark for the development of the traditional financial industry. The blockchain can basically find a one-to-one mapping. In just a few years, the blockchain field has spontaneously formed an inter-institutional lending market. Products and other markets. At the same time, due to the lag of supervision, the financial gameplay of the currency circle lacks corresponding supervision and third-party custody, the information is seriously transparent, and individual users are easily deceived and deceived by high interest rates.
Zhao Dong believes that:
"Monetary Circle Money Management", I think the biggest significance may be that it relieves the anxiety of many users who are unable to make more coins. Due to the lack of effective supervision and the low cost of doing so, the digital money market has been chaotic. At present, most of the "financial products" on the market, especially the so-called "quantitative financial management", can not avoid the "black box" operation, and there are huge hidden dangers. So from my personal point of view, I don't recommend novice users to easily participate in financial projects.
Pan Chao believes that:
Digital asset management is a financial product that is built around blockchain assets, amplifying risks or stabilizing returns. Debit or loan, DeFi or Staking. In the world of blockchains, there was only Bitcoin, and with the stable currency, there were derivative money market products. Personal advice, do not blindly pursue the currency standard, the French currency is also very important. Especially for small currencies, coin-based financial management does not make sense.
Understand the management of digital assets, of course, but also the correct posture of financial management
The general opportunity cost of the currency management is to abandon the short-term liquidity of holding assets, but the price of the currency is fluctuating violently. Once it is forced to lock in liquidity and the price falls, it may suffer huge losses. Therefore, it can guarantee the correct posture of financial management under the premise of liquidity. At present, the pure arbitrage strategy can satisfy the stable income and good liquidity, and the opportunity is risk-free. The disadvantage is that the market capacity is relatively small.
I think the best strategy should be to pursue "the safest", not more profit. The high-interest financial platform is the most vigilant user. Just choose the coin to move, as long as you have one or two bulls, you can become the winner of the 1% of the currency. From this perspective, the optimal strategy may be the coin, not the currency.
So know the correct posture of financial management, then how to control the risks? For example, the most popular Staking, borrowing and DeFi.
The first thing to look at is the currency standard or the legal currency standard. In terms of the currency standard, staking is less risky, and financial derivatives can guarantee certain liquidity. The legal currency standard, borrowing and defi to obtain stable French currency income is a good direction.
Any financial management project can't avoid the problem of centralized operation and asset management risk. We believe that the “transparent power” can achieve 100% asset publicity to minimize the platform's evil and avoid the risk of lightning. The advice to the user is of course to vote with the feet and choose a platform that can be transparent.
Objectively speaking, the risk of DeFi is minimal. Assets and returns are stable coins (compared to staking asset fluctuations), and custody is decentralized Ethereum (compared to the risk of running centralized lending). Of course, centralized solutions also have their own advantages. For example, localized operations, 100% proof of assets, and excellent personal credit guarantees like Dongshu.
Although Staking is hot, many projects have expanded their Staking business. However, recent statistics have found that most of the projects' Staking's legal income is negative. Why? Can the Staking economy continue?
This is a cyclical problem. In the past few months, the income of staking's legal currency is indeed negative. In the past six months, the proportion of bitcoin in the market value of blockchain has become higher and higher, and the proportion of altcoin has become lower and lower, which has led to such a big environment.
At present, everyone thinks that the staking economy may be analogous to pow, and there are some giants like the mainland. Therefore, everyone can continue to subsidize the price war and rob users, which leads to fierce competition in the industry and low profit margin. Under such circumstances, if you are in a long-term bear market, you will definitely die out of a large number of blind-edged entrepreneurs, and finally select those entrepreneurs with technical barriers and economic models. The current stage of staking is still relatively primitive, and some financial derivatives have just begun to appear.
Nowadays, the digital asset lending industry is also developing rapidly, and various platforms are emerging one after another. Will the platform's lending business adversely affect the market? Will it form a high-risk P2P mode that can be thundering at any time? Zhao Dong:
I don't think it can be said that "adverse effects", on the contrary, these lending practices have increased the liquidity and trading depth of the entire market. The whole system is healthy and benign. The market-driven, transaction-voluntary, and demanding, the borrower has obtained a higher degree of financial flexibility, while paying interest to compensate the lender's liquidity loss.
Digital currency is a high-current asset. When the borrower is unable to repay the loan, the pledge asset can be realized quickly. The traditional P2P pledge is mostly fixed assets, and it is difficult to realize. In addition, the root cause of P2P thunder is that the platform privately misappropriates user funds.
In fact, most of the RenrenBit lending market currently has stable currencies such as USDT, and the proportion of borrowing in other currencies is small. These users are more likely to be considering the short-selling market, borrowing money, selling, and then buying more coins in the low position to achieve profitability. This mode of operation is actually a lower multiple lever operation.
DeFi is very popular as an emerging business model this year and is considered to be the future of finance. However, Eitafang founder Vitalik believes that DeFi is still immature and does not recommend a lot of investment. How does Pan Chao of MakerDAO look? The immature aspect of DeFi is reflected in the fact that the current DeFi products are related to centralization. How to achieve true decentralized finance?
In addition to no need for third-party hosting, transparency, and user assets in their hands, DeFi's obvious advantage is its low cost. Especially for large-capital loans, DeFi's lending rate is much lower than the centralized lending. The low cost is possible because DeFi is a global market-oriented market that does not require access. The current problem lies mainly in the user experience of the high threshold and the lack of assets. These are not issues of DeFi itself, but the immaturity of the blockchain itself, such as the need for better private key management schemes and cross-chain technologies.
In fact, mainstream DeFi products, such as Maker, Compoud, dYdX, and domestic dforce and ddex, lending behavior and fund custody have basically been decentralized. The so-called centralization link is generally set by interest rate model and when an emergency occurs. System protection. In my opinion, the centralization of the two links at this stage is beneficial, and as the blockchain infrastructure matures, it is gradually decentralized, such as Maker's vote on Dai interest rates.
In November, Cosmos and IRISnet will achieve cross-chaining. Will DeFi based on Ethereum evolve to DeFi in a cross-chain ecosystem? What does this mean for DeFi?
DeFi is a step that must be achieved to expand the current market value by 10 times . I personally think that Ethereum will still be the main block of DeFi (Home Blockchain), and the security brought about by the high degree of decentralization will be the highest settlement level of financial assets.
Interestingly, as a guest, Pan Chao raised a question for cross-chain solutions? Is the cross-chain BTC still a "real" BTC?
Shenyu: It’s not a liability.
Zhao Dong: The god fish is right. At this time, the user is holding a bitcoin bond, and there is a potential problem of unpaid. At present, there is no perfect cross-chain solution, mostly gateway mode: For example, if you save btc to me, I will send a Zhaodong bitcoin to circulate in the chain.