Investment Difficulties and Capital Management Opportunities in Crypto Assets

With an increasing number of crypto assets, from Bitcoin to smart contract layer 1 to Defi, NFT, and etc., the complexity level shows a step up and becomes more and more sophisticated in the future. All kinds of assets on the chain with the combination create a variety of assets, and their returns are diverse.

Different types of protocol create various revenue models:

• Gains from price increases and decreases

• Lending and borrowing gains

• Staking gains

• LP fee earnings

• Mining gains

• Arbitrage gains

The above several different factors of allocation gain (or opportunity cost) with these complex and variable play appear, if there is a model approach that can solve the problem of gain, there should be a certain market.