Introduction

We are on the verge of Bitcoin's fourth halving in 2024. At a time when the halving market is fermenting, investors are demanding stable asset management and hedging derivatives. Simple to use and boasting relatively stable returns, CeFi asset management products are increasingly becoming the leading business aspect of exchanges and financial services organizations. These product types have evolved from the initial Single Asset to dual-currency asset management, staking, lending, strategy trading, and other more diverse, large-scale, differentiated products without earning interest.
Common Asset Management Methods in Cryptocurrencies
DeFi (Decentralized Finance)
DeFi asset management products refer to DeFi protocol products that are built on top of Layer 1 or Layer 2 blockchains such as Ethereum, Arbitrum, etc., and offer users asset allocation, governance, and interest-earning functions. Users can interact directly with these protocols through a Crypto wallet, which usually requires the transfer of assets in the wallet to the smart contracts of these protocols. These assets are then allocated to other protocols in the market, providing liquidity for various economic activities such as transactions and lending in the market, resulting in profits.
Decentralized financial products mainly include lending, yield aggregators, structured products, liquidity mining, and liquidity staking. After years of development, the DeFi ecosystem has undergone tremendous changes, reaching $228 billion in total value locked (TVL).