Farming on Ethereum is too expensive for the majority of DeFi users to return a profit
New yield aggregation strategies take time to build vaults, test, and audit
Strategies offer quickly decreasing yield as farmers pile into the highest APYs
High-yielding apps like BlockFi lack transparency in their strategies. Others like Cred exit scammed and (once again) highlighted the importance of transparency and decentralization
Safety -- vault strategies require extensive code and carry increased smart contract risk
Managed, yield-seeking funds that retain decentralized control of capital while efficiently investing pooled funds in whitelisted strategies to capitalize on the highest investment-grade yield (possibly even before the yield aggregators do!).
The DeFi market has seen outstanding growth throughout the past year and there is no sign of innovation and adoption slowing. As mainstream investors and institutions begin to seek higher yield on their assets to offset the effects of suppressed interest rates on their portfolios, we expect a continued influx of capital.
BlockFi, Celsius Network and Nexo now control a combined $30 Billion in AUM. With a lack of transparency and questions surrounding how they are achieving their yield, there is significant opportunity here for increased transparency and decentralization.