Zapper.Fi | The Next Generation of Asset Management

General - August 25, 2020

Video Overview

In this video, we talk about Zapper, a dashboard for your financial activity on Defi. Zapper was one of the early coming-togethers of two Defi players – Defi Zap and Defi Snap.

Zapper is important because of the unique incentive model it has created. In the financial world, incentives can be broadly divided into the following categories:

  • Growth
  • Income
  • Hedging

Every asset has an incentive attached to them. They either grow over time (growth), give you regular returns (income), or allow you to offset risk (hedging). What Zapper allows you, is the ability to have all these incentives wrapped into one transaction.

Each of the above incentives can be expressed in the Defi world differently. Going long on a cryptocurrency or simply holding onto it until its value goes up, is growth. Taking out a derivatives contract in order to hedge the future price of a cryptocurrency is hedging. Participating in a liquidity pool by contributing cryptocurrencies and allowing it to be borrwed or collateralized will give your regular returns, income.

Using the composability of the Ethereum network, Zapper allows you to conduct all the above transactions in one go. This means that you can have several incentives working for you at once.

Why wrap all these transactions in one? It saves on,

  • Time
  • Fees
  • Effort
  • Transactions

Through one transaction instead of a few back and forth, you can save time, fees, effort and the sheer number of transactions made. It doesn’t end here.

By reducing the time, fees, effort and trasnactions, Zapper has made it simple and easy to introduce the Defi system to new users. This way the uninitiated can enter into the Defi world, get exposure to the asset-classes they’d like, earn a regular and safe income, hedge away their risks, and do it all through a simple and easy system.

A system like Zapper is uniquely important in onboarding new customers and building on organic foundation for the Defi world. They do this by offering a simple to understand and easy to use system of mutiple financial incentives, similar to the early concept of the mutual fund or the exchange-traded fund in the traditional finance world. The key difference is Zapper allows mass customization and is decentralized, reducing the fees and friction of the process.

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