On-Chain vs Off-Chain Strategy Deployment
Considerations for Deployment
Security and Smart Contract Risk (On-Chain exploits vs. Exchange hacks)
Regulatory Compliance (On-Chain anonymity vs. Off-Chain KYC)
Choosing the Right Approach (Aligning strategy with investor profile and goals)
Hybrid Approaches
Combining CeFi and DeFi (Using Centralized Custody to deploy in DeFi protocols)
Tokenized Off-Chain Assets (Crypto ETFs, Tokenized Securities bridging to DeFi)
Arbitrage Between Realms (Capturing spreads between DEX and CEX markets)
Off-Chain Strategies
Centralized Platforms & Funds (Executing via Exchanges, Funds, Custodians)
Off-Chain Derivatives (CME Futures, OTC Options and Swaps)
CeFi Staking and Yield Programs (Exchange-Based Earn Products)
Benefits: Speed, Customer Support, Established Legal Frameworks
On-Chain Strategies
DeFi Lending and Yield Farming (Fully On-Chain Income Generation)
On-Chain Derivatives Trading (Perpetual Swaps and Options via Smart Contracts)
Automated Market Making & Liquidity Provision (Decentralized Trading Strategies)
Benefits: Transparency, Self-Custody, Composability (Open finance advantages)