On-Chain Capital Management

Definition ∞ On-Chain Capital Management is the practice of managing financial assets and investment strategies directly on a blockchain network using smart contracts and decentralized protocols. This involves allocating, moving, and securing digital capital without reliance on traditional financial intermediaries. It offers transparency and programmability. This method leverages blockchain’s inherent properties.
Context ∞ On-chain capital management represents a core application of decentralized finance, enabling automated investment strategies and transparent asset tracking. News frequently covers innovations in this area, such as new DeFi protocols for yield optimization or automated portfolio rebalancing, indicating a shift towards more permissionless and efficient financial operations. This area drives significant DeFi innovation.