Now that you’ve learned DeFi fundamentals, like how you make money in DeFi, and the
various jobs required to make the DeFi economy function, you can explore how to
become a DeFi investor yourself.
DeFi pros invest in DeFi by selecting specific DeFi protocols to invest in. They evaluate
DeFi opportunities in a similar way to how investors evaluate other opportunities: by
weighing out the risk and the reward.
Here’s how to think of risk/reward and ROI in DeFi.
Risk factors | Reward factors (yield) |
- How market volatility affects the protocol
- How well-tested the technology behind the protocol’s smart contract is | - Amount of profits the protocol can generate and distribute to the participants
- Incentives or promotions the protocol may be offering to attract participants with liquidity |
However, new DeFi investors tend to prefer a more diversified approach to investing. At
Exponential, we take it a step further by reviewing thousands of DeFi pools and curating
the top 5% for Exponential users to optimize for the best yields across the four asset
classes. We do the heavy lifting by assessing the associated risks and managing the
complexities of the investment process—including bridging, gas fees, and custody of
assets.
DeFi with Exponential.fi | Do it yourself DeFi |
- One-click investing
- Expert risk assessment
- Funds backed 1:1
- Multi-chain support
- Curated opportunities (top 5%)
- No gas fees
- Easy taxes | - Time-consuming operations to deposit, withdraw and harvest rewards
- Confusing protocols and dApps
- Complex bridging across chains
- Thousands of pools available
- Sky-high gas fees
- Tax nightmares |
Experience the benefits of DeFi without the complexity. Click here to get started with
Exponential.