With all the different ecosystems that exist in web3 between L1’s and L2’s, fragmentation is an issue. A user might find that they have some USDC in Arbitrum network, some OP tokens on OP Mainnet and some leftover ETH in Mode. If the user is not actively earning any yield on these assets, then there is a missed opportunity.
DeFi (Decentralized Finance) has the advantage to do portfolio management programmatically. This is why we thinK that an “idle score” is a great way to detect missed opportunities on a users capital and then maybe lead them to invest their idle capital.
Capital efficiency refers to how effectively a person uses their invested capital to generate returns. In a personal portfolio context, it involves maximizing returns on investments while minimizing costs and risks. Capital that is just sitting there without generating yield is not efficient at all, that’s why we need some way of telling the user how their wallet is doing, considering several ecosystems.
We can use DeBank to check some user’s wallet and this as an example, check all the assets this user has in several ecosystems
https://debank.com/profile/0x3e8734ec146c981e3ed1f6b582d447dde701d90c
Introducing the Idle score, a dapp where you’ll be able to connect your wallet (or just paste your address to check) and will show you a score on how capital efficient you’re being.
This will be a score that ranges from 0 to 100 and will take into consideration as many ecosystems as possible. The idea is that after calculating the user’s score, the dapp can recommend some opportunities to invest this idle capital such as Mode staking or any other opportunities in the Mode ecosystem.
Capital efficiency is super important and having a correct portfolio management is key to being a successful investor. Taking advantage of DeFi features and the whole blockchain infrastructure, we can help users be more effective with their capital and take on opportunities that they may not be aware of.
If we also add a good user experience for bridging and using these funds, then the user will have a place where they can check how efficient they are and inform them to make better decisions.
This will also help ecosystems as it will help them increase the usage of the TVL that’s idle and not locked into protocols.
Some Resources: https://debank.com/ Opportunities: https://app.steer.finance/ https://defillama.com/yields?chain=Mode https://merkl.angle.money/?chain=34443