DeFi’s popularity has increased exponentially in 2021, with total value locked (TVL) across all DeFi platforms surging from under $20 billion on January 1st to an all time high of over $260 billion on December 1st. The 1,200% growth in one calendar year is prompting speculation that the DeFi market can grow into a $1 trillion dollar industry. Key to this growth is institutional participation in DeFi.
Similar to other digital asset operations, DeFi operations also require a safe, easy and scalable solution. Let’s look further into how current solutions are not fit for purpose, and how CYBAVO’s DefiBOX provides just this.
Institutional Challenges of Connecting to DeFi
DeFi is a popular target for hackers, which fuels investor concern and oftentimes sidelines institutional participation. For institutions to access DeFi with confidence, there needs to be an alternative to the current solutions available to them.
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Browser-based wallets - Unprotected private keys
Some institutions use browser-based wallets, as this provides a quick and familiar way to access DeFi protocols. However, browser-based wallets expose your private keys, giving hackers the opportunity to steal your keys and the funds in your wallet.
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For organizations handling funds that are not their own, it is paramount to protect the private key from exposure.
Hardware wallets - Persistent operational issues
Some institutions use hardware wallets as a more secure alternative to browser-based wallets. Hardware wallets provide more security, but bring about operational issues.
For example, it is difficult for hardware wallet-using institutions to ensure that transactions over certain amounts go through the multi-level, multi-approver workflows that corporate policies may require. In addition, using hardware wallets become increasingly difficult to manage as operations scale.
In-house solution - Costly to build and maintain
Lastly, some enterprises with large engineering resources choose to build their own DeFi integrations. However, each DeFi protocol requires its own custom integration, and these integrations require ongoing maintenance. This quickly becomes a time-intensive and expensive option.
Comprehensive Institutional DeFi Access with CYBAVO
CYBAVO DefiBOX gives institutions an easy yet operationally secure, flexible, and efficient way to utilize DeFi strategies like staking, yield farming, decentralized exchange trading, and decentralized lending & borrowing.
Our solution provides:
- MPC Technology to encrypt private keys during all transactions and DeFi interactions.
- Easy and direct DeFi interaction via WalletConnect and our dedicated Authenticator App.
- API framework for automated trading and creating retail products.
- Multi-level approval policies & workflows for sending assets to or interacting with DeFi protocols.
- Corporate governance to protect from both internal and external bad actors.
- Ongoing DeFi position monitoring and early alert system to help avoid significant losses.
- Audit log of all DeFi transactions for complete transactional oversight for compliance purposes.
Supported Layer 1 and Layer 2 chains:
- Ethereum (ETH)
- Binance Smart Chain (BSC)
- Polygon (MATIC)
- Avalanche (AVAX)
- Arbitrum (ARB)
- Huobi Eco Chain (HECO)
- OKChain (OK)
- and more
Connect to popular DeFi Apps such as:
- Aave
- Compound
- Curve
- Anchor
- Yearn
- Uniswap
- Balancer
- MakerDao
- Benqi
- Multichain
- and more
Get in touch to discuss whether CYBAVO DefiBOX is the institutional-grade solution for you.