The Problem
Last updated
Last updated
Despite having funds available, many investors leave them dormant in wallets or low-yielding positions. Why? It’s too much effort for an extra 2% per annum.
Many investors, both new and experienced, often find themselves with idle funds that are not actively generating substantial returns. This inaction stems from the perceived complexity and effort required to chase marginally higher yields. Moving funds from one platform to another for a slight increase in annual percentage yield (APY) seems daunting and not worth the hassle. This leads to significant amounts of capital being underutilized, thereby missing out on potential earnings that could accumulate significantly over time.
Liquidity providers (LPs) face restricted options beyond adjusting ranges, leading to idle capital when their positions are out of range.
LPs on platforms like Uniswap frequently encounter challenges when their provided liquidity falls out of the active trading range. In such cases, their capital remains idle, generating no fees or returns until it is manually readjusted. This lack of flexibility in managing out-of-range positions results in inefficiencies and lost earning potential.
LPs are forced to continuously monitor and adjust their positions to stay within the optimal range, which can be labor-intensive and time-consuming.
Many users struggle to keep up with trends and identify services offering optimal returns, leading to untapped yield potential.
The DeFi space is characterized by rapid innovation, with new protocols and yield farming opportunities emerging regularly. For many users, staying abreast of these trends and pinpointing which services offer the best returns is challenging and resource-intensive. This often leads to missed opportunities and suboptimal allocation of assets. The constantly evolving nature of the DeFi landscape demands a significant commitment to research and monitoring, which many users find difficult to manage alongside other responsibilities.
How does Goat solve these problems?