DeFi Smart Portfolios Post-2024 | Comparison with TradFi and EOA

Smart Portfolios in 2024: Key Features & Examples

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A smart portfolio, post-2024, is a customized account abstraction wallet that adds personalized insights and features like cross-chain trading, automatic risk management, on-chain verified copy trading, and real-world assets (RWAs). You get real-time performance tracking, token insights, and trends, all with low fees, self-custody, and full transparency.

A smart portfolio, post-2024, is actually a wallet that lets you deploy multi-chain trading strategies, manage risks automatically, copy on-chain verified top traders, and add real-world assets (RWAs). It provides near real-time performance tracking and insights into popular tokens and portfolio trends, all with low fees, self-custody, and full transparency.

In simple portfolios or externally owned accounts (EOAs), you manage your assets through a wallet like MetaMask, but transactions may require interaction with third-party platforms or services (e.g., decentralized exchanges or protocols), which can add complexity.

In simple portfolios or externally owned accounts (EOAs), you manage your assets, but transactions are typically handled through a third-party platform or service (e.g., centralized exchanges like Coinbase or Binance).

Simple portfolios need non-custodial solutions. Source:

In traditional finance (TradFi), products like stocks, bonds, and mutual funds are managed separately, making it hard for investors to combine them into flexible strategies; thus, limiting customization and integration.

In simple portfolios or EOAs, you can manage individual assets but can't easily combine different strategies or protocols. Each asset works on its own, which limits optimization.

Simple portfolios lack a unified risk management system. Source:

Simple portfolios don’t alleviate DeFi’s complexity. Source:

In smart portfolios, composability lets investors mix and match different protocols, assets, and strategies. DeFi tokens and services work together, allowing them to combine activities like lending, staking, and yield farming into one efficient strategy.

In EOAs, users handle compliance with basic tools or external platforms like Trust Wallet, which often lack strong risk management or pre-trade checks. As a result, many users spend significant time on trades but still fall prey to scams or poor decisions due to weak compliance measures.

In EOAs, users manage their own compliance, relying on basic tools (e.g., price trackers) or external platforms (e.g., Trust Wallet), which may lack robust risk management or pre-trade checks. On average, wallet users spend considerable time and effort ensuring they make the right trades, but many still fall victim to scams or bad trades due to insufficient compliance measures

Smart portfolios incorporate DeFi’s transparency + CeFi’s user-friendliness and compliance. Source:

In simple portfolios or EOAs, investors typically make decisions on their own, relying on personal research or external data sources, but without access to verified real-time collective intelligence.

Crowd intelligence leading the way in smart portfolios as well. Source:

In simple portfolios or EOAs, you typically have access to basic data such as asset prices and personal transaction histories, but they lack the advanced analytics (e.g., risk-adjusted return metrics like the Sharpe ratio, volatility assessments, or liquidity risk tracking) needed to track deeper performance metrics, market trends, or real-time risks.

Sharpe rations: A must have for smart portfolios post-2024. Source:

However, smart portfolios offer real-time data, predictive insights, and detailed performance metrics. These tools allow you to track portfolio performance, assess market volatility, and identify risks or opportunities, helping to optimize strategies based on current conditions.

In simple portfolios or EOAs, investors generally don’t have access to real-world assets within their portfolios, limiting them to purely digital or blockchain-based assets, which can reduce diversification options.

Explore endless ways to integrate RWAs through smart portfolios. Source:

Similarly, in simple portfolios or EOAs, investors must manually rebalance their portfolios, requiring constant attention and making it hard to respond quickly to market fluctuations. Both approaches share the challenge of being reactive and labor-intensive.

How to rebalance portfolios: Manually or through AI-driven community-sourced intelligence? Source:

In simple portfolios or EOAs, while fees are generally lower, there can still be a lack of full transparency regarding how certain fees are applied, especially on third-party platforms. 

Managing services across multiple platforms with simple portfolios leads to high fees, fragmented tools, and wasted time. Source:

In simple portfolios or EOAs, you can interact with decentralized exchanges or lending platforms, but managing liquidity across multiple platforms often requires manual effort and does not offer the automation or real-time insights of smart portfolios.

Simple portfolios lack real-time tools, leaving investors vulnerable to liquidity manipulation and poor decision-making. Source:

Smart portfolios help by offering real-time, automated liquidity risk management. Source: