Publish Date
October 7, 2024
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Owning a smart portfolio should feel like having a top hedge-fund-level investment wallet that manages your funds with the same care, without actually controlling them.
No middlemen, no hefty fees—just you and a portfolio fine-tuned to your goals in near real-time.
In this article, I will outline what smart portfolios will be post-2024 and what features and benefits you will enjoy in comparison to TradFi (Traditional Finance) and simple portfolios (externally owned accounts)
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.
”MC² Finance turns your wallet into a smart portfolio. Once added, we will give you the exact insights which are perfect for your wallet, like what's the worst token that you actually have in your wallet, what’s the highest risk, what are similar wallets that actually make more returns than you, and what you can learn from them.” Chris - Cofounder @ MC² Finance
The top features of smart portfolios post-2024 include:
In a centralized system, financial institutions like banks or brokers act as middlemen to manage your trades and secure your assets, leading to censorship, lack of ownership, and counterparty risk.
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 adds complexity.
Decentralization, on the other hand, is key to smart portfolios nowadays as it lets you directly manage your assets by conducting transactions on intelligent blockchain networks, whereby you are in control of your trades and funds don’t leave your wallet.
💡 MC² Finance supports self-custodial execution by allowing you to keep custody of your assets. Instead of handing over control to a third party, the platform sends trading signals directly to your smart wallet, ensuring trades are executed in real-time.
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.
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.
In smart portfolios, composability lets you 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.
💡 MC² Finance enables flexible, adaptive portfolios by allowing users to build multi-chain, cross-protocol portfolios through its trading studio. You can manage assets across multiple DeFi platforms, combining staking on Compound, liquidity on Uniswap, and yield farming on Curve—all in one portfolio.
In TradFi, pre-trade compliance typically involves manual checks by financial advisors or compliance departments to ensure trades meet regulatory and investment guidelines.
In EOAs, you handle compliance with basic tools or external platforms (like Trust Wallet), which often lack strong risk management or pre-trade checks. Consequently, many users spend significant time on trades but still fall prey to scams or poor decisions due to weak compliance measures.
Smart portfolios use automated tools to ensure safer investments by enforcing pre-trade compliance (i.e., meeting diversification requirements or adherence to industry-specific investment limits) and managing risk through specific, user-defined parameters (such as setting a maximum risk level or avoiding volatile assets).
💡 Before executing a trade, MC² Finance checks if it meets criteria you’ve set, like ESG ratings, asset classes, or risk thresholds. It also offers real-time risk management and intent-based trading by analyzing factors like market volatility, liquidity, and past performance.
In TradFi, investment decisions are often based on the research of a small group of analysts or advisors. You have to rely on limited, centralized sources of information, which can lack diverse insights.
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.
In smart portfolios within DeFi, crowd-sourced intelligence taps into the collective knowledge of a global network of traders and investors. This approach uses real-time, on-chain data to analyze successful strategies, giving investors access to a wider range of insights and expertise.
💡 MC² Finance uses on-chain verification to validate expert traders and their strategies, and with the upcoming crowd-sourced intelligence module, you can follow top DeFi strategies using real-time data like traded tokens and portfolio updates to optimize your smart portfolios without any direct interaction.
In TradFi, you have to rely on basic tools like price charts, historical performance, and reports from financial advisors. Real-time, detailed analysis is usually limited to institutional investors, leaving retail investors without the tools to evaluate risk or spot opportunities effectively.
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.
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.
💡 MC² Finance provides near real-time data on market volatility, liquidity risks, and the performance of various DeFi protocols.
In TradFi, investing in RWAs like real estate, commodities, or corporate bonds involves complex processes and limited liquidity. These assets are often managed by brokers or institutions, making real-time access and trading difficult. This separation from more liquid assets like stocks or mutual funds further complicates diversification across asset classes.
In simple portfolios or EOAs, you don’t have access to real-world assets within your portfolios, limiting you to purely digital or blockchain-based assets, which can reduce diversification options.
In DeFi smart portfolios, integration with RWAs tokenizes real-world assets on the blockchain, allowing investors to access and trade assets like real estate or commodities in a more liquid and efficient way. Tokenization improves liquidity, speeds up transactions, and simplifies portfolio diversification across both traditional and decentralized assets.
💡 MC² Finance is set to support RWA integration by offering tokenized versions of assets like real estate and commodities alongside DeFi products, which can be lended and staked accordingly.
In TradFi, you pay high fees for services like portfolio management and trading, including hidden charges that eat into returns. Plus, it’s often unclear how trades are made and where fees go.
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.
In DeFi smart portfolios, low fees and transparency are key benefits. Blockchain technology removes the need for middlemen, reducing costs and recording all transactions publicly.
💡 MC² Finance offers negligible fees and transparency, and lets you track all transactions and fees in real-time, ensuring you keep more of your returns while seeing every detail of your portfolio’s performance.
In TradFi, liquidity is provided by big institutions like banks or market makers, who earn fees for facilitating trades. Retail investors have limited access to participate in this process and often face higher fees due to intermediaries.
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.
In DeFi smart portfolios, liquidity provisioning allows anyone to contribute to decentralized exchanges (DEXs) or lending platforms and earn rewards like trading fees or interest. This system gives you more control and the ability to earn passive income.
💡 MC² Finance allows you to earn fees or interest while managing liquidity across multiple DeFi protocols—all while keeping full control of your assets.
Hence, if you’re ready to take control of your investments and explore the future of decentralized finance, MC² Finance provide the tools and insights you need to win.
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