Opinion by: Brian Huang, co-founder of Glider
The crypto markets operate around the clock, posing constant risks for users. This underlines the pressing need for automated protections that function continuously. Unlike the US stock market, which closes every weekday at 4:00 p.m. ET, cryptocurrency markets never rest.
As various assets, including stocks, transition on-chain in the coming years, it’s likely that most assets will trade 24/7. Although global, permissionless access to assets is advantageous, no consumer tools today—be it traditional finance (TradFi) or decentralized finance (DeFi)—are designed to protect users continuously.
We are entering a new era characterized by perpetual market exposure. Consequently, DeFi has fostered a culture of sleepless nights disguised as self-sovereignty, compelling individuals to monitor markets, manage risks, and execute transactions at all hours. This relentless exposure often leads to burnout.
The paradox lies in the fact that we have established genuinely programmable finance on-chain, so why aren’t we leveraging it? Presently, DeFi involves navigating multiple applications, manually managing funds, and enduring late-night margin calls and liquidations.
While outsiders assume that market volatility deters everyday investors from engaging with DeFi, the true barrier is the absence of robust systems designed to safeguard users. The next phase of crypto must emphasize embedded automation, allowing wallets to be intelligent, proactive, and inherently secure.
Modern crypto wallets function as static vaults
Crypto wallets are akin to static vaults. Unlike smart devices that predict and adjust to a user’s needs, prevalent crypto wallets require users to navigate through endless manual approvals. This reliance on constant manual input is not sustainable in a round-the-clock market landscape.
This issue was starkly highlighted by the collapse of Terra’s UST in 2022. The stablecoin depegged approximately 5% in four hours before plummeting to near-zero within three days. If users in Asia held UST in self-custodial wallets, their stablecoins saw a 30% drop overnight.
Due to manual approvals, there were no automatic safeguards or capabilities for automated selling. Many crypto users lost their life savings during this collapse—something smarter wallets could have prevented.
Despite ongoing market volatility, DeFi tools are primarily reactive rather than protective. There are currently no embedded safety mechanisms or automations designed to avert losses during offline or asleep hours, ultimately placing investors in a constant state of vigilance.
This dilemma is often attributed to poor user experience, but the reality is it stems from a foundational flaw inherent in today’s wallets. Until wallets can execute predefined strategies and manage even basic risks, they will remain a resource for advanced users, not average investors.
TradFi possesses protective automation
Conversely, TradFi systems feature built-in protections. From stop-loss orders to scheduled portfolio rebalancing, traditional tools automatically adjust portfolios to maintain risk levels amid market fluctuations, removing the need for manual intervention.
Related: Are crypto wallets becoming the control centers of our digital lives?
These protections are integrated into the framework, enabling investors to step back. While DeFi purists argue for prioritizing user control, it’s essential to recognize that without automation, control can become a burden.
Retail investors can benefit without needing to meticulously understand every underlying mechanism. Whether through robo-advisors or passive index strategies, people trust that their investments are working for them.
DeFi must enhance its intelligence
If DeFi aims to evolve into a core element of our financial system, wallets must transform into authentic partners: automatically safeguarding positions, identifying rebalancing opportunities, and reallocating resources to new yield sources while users sleep. Mechanisms that prevent liquidations and respond to market changes need to be integral to investments to ensure confident investing.
Ultimately, users seek assurance that their investment objectives will be executed smartly and efficiently.
Similar to how one can “set and forget” a thermostat or automate bill payments, intelligent DeFi should provide confidence that your wallet consistently works for you. The capability to step away from the screen and trust the system is pivotal for scaling DeFi beyond its current niche.
While some critics fear that adding layers of automation—especially smart agents or rule-based executions—could reintroduce centralized risks or create opaque layers, it’s crucial to understand that automation is not about giving up control. Instead, it’s about codifying control. Much like determining investment objectives and risk levels on traditional trading platforms, individuals can set rules, modify them anytime, and maintain transparency throughout the process.
Intelligent automation strengthens sovereignty, as a wallet capable of offering 24/7 protection is no less decentralized; it merely becomes more user-friendly.
Allow your wallet to operate while you rest
The conclusion? If autopilot can safely drive your car without input, your wallet should also be able to manage your portfolio without requiring your constant attention.
Every technological field has embraced intelligent automation.
It’s high time for crypto to evolve and provide what users genuinely need to succeed. The next wave of crypto adoption won’t be led by sleepless traders but by systems that empower people to invest confidently.
Opinion by: Brian Huang, co-founder of Glider.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
