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We are excited to share our latest research paper, The Institutional DeFi Trilemma. This report dives deep into the core pillars of DeFi, offering insights on how to navigate the complex landscape of decentralized finance and find the balance between risk, reward, and capacity.
![DeFi for Institutional investors — strategy research paper](https://cdn-images-1.medium.com/max/1024/1*djnlYwXm5rygT6UxH2qcLg.png)
In this paper, you’ll find an in-depth analysis of the unique challenges and opportunities within the DeFi ecosystem, particularly from the perspective of institutional investors. Our research team examined various DeFi protocols, yield strategies, and risk factors, providing a framework for understanding and optimizing your DeFi strategies.
The Institutional DeFi Trilemma Model
At the heart of this paper is our innovative model, essential for organizations aiming to deploy capital in DeFi effectively. This model addresses three critical dimensions in DeFi: risk, reward, and capacity.
![Institutional DeFi Trilemma: Balance between risk, reward and capacity](https://cdn-images-1.medium.com/max/400/1*ASwfooLZmPfdSsBxGht5Sw.png)
- Risk: DeFi risks are multifaceted and more complex than those in traditional finance. We cover technical risks from smart contract vulnerabilities and protocol designs, as well as economic risks stemming from market dynamics and protocol mechanisms.
- Reward: DeFi rewards, such as staking, liquidity provision, lending rates, and liquidity mining, are explored in detail.
- Capacity: This unique factor determines the optimal capital deployment without significantly diminishing returns or escalating risks, considering liquidity and protocol limitations.
Do you want to know more about these aspects and how to balance them effectively? Eager to learn the best practices for managing risks and maximizing returns? Discover the answers and more by downloading our full report.
Download the Institutional DeFi Trilemma Report
Introducing Our Latest Research Paper: The Institutional DeFi Trilemma was originally published in IntoTheBlock on Medium, where people are continuing the conversation by highlighting and responding to this story.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.