How Investors Can Protect Themselves From the Hidden DeFi Costs in 2024
Portfolio Pulse from Benzinga Contributor
The article discusses the hidden costs in DeFi, beyond upfront gas fees, that can impact investor returns, such as Impermanent Loss, Loss-Versus-Rebalancing, Slippage, and Maximal Extractable Value. It mentions traditional payment processors like Visa and Mastercard for comparison and highlights the dynamic nature of gas fees on platforms like Ethereum and Solana. It suggests ways to mitigate these costs, including understanding AMM models, researching platform strategies, and using tools like LlamaSwap, 1inch, Matcha, and Flashbots Protect. Newer oracle protocols like Pyth are also mentioned as innovative solutions.
April 05, 2024 | 9:22 pm
News sentiment analysis
Sort by:
Ascending
NEUTRAL IMPACT
Chainlink is mentioned as a traditional oracle protocol using a pull-based model, contrasting with newer protocols like Pyth that use a push-based model.
Chainlink is mentioned in the context of oracle protocols, contrasting its traditional model with newer, potentially more efficient models. This could influence investor perception but is unlikely to have a direct short-term impact on its price.
CONFIDENCE 80
IMPORTANCE 40
RELEVANCE 50
NEUTRAL IMPACT
Mastercard is referenced as a traditional payment processor with fixed fees, in contrast to the dynamic gas fees in DeFi platforms.
Mastercard is mentioned in a comparative context to highlight the differences in fee structures between traditional payment processors and DeFi platforms. This comparison is unlikely to have a direct short-term impact on Mastercard's stock price.
CONFIDENCE 90
IMPORTANCE 20
RELEVANCE 30
NEUTRAL IMPACT
Visa is mentioned as a traditional payment processor with fixed fees, contrasting with the dynamic gas fees of DeFi platforms.
Visa is mentioned in a comparative context to highlight the differences in fee structures between traditional payment processors and DeFi platforms. This comparison is unlikely to have a direct short-term impact on Visa's stock price.
CONFIDENCE 90
IMPORTANCE 20
RELEVANCE 30