Liquid crypto funds have a DeFi problem nobody talks about

The following is a guest post and guest post from Thomas Pratter, Founder and CEO at Renesis.

Liquid crypto funds are having a moment. The number of actively managed vehicles keeps growing, DeFi strategies are gaining legitimacy, and regulatory clarity is slowly catching up. Institutional allocators are paying closer attention than ever.

But behind the optimism sits a less glamorous truth: most fund managers are still running their operations on duct tape.

The Spreadsheet Problem

Ask any emerging fund manager how they track their portfolio across five exchanges, three chains, and a handful of DeFi protocols. The honest answer is usually some combination of spreadsheets, custom scripts, and a lot of manual reconciliation.

This is not a technology problem in the traditional sense. The protocols work. The exchanges have APIs. The data exists. The problem is that nobody has connected it all in a way that makes sense for a fund managing real capital.

For a CeFi-only fund trading spot and perps on centralized exchanges, the tooling gap is annoying but manageable. For a fund running DeFi strategies, providing liquidity, staking, lending, and yield farming across multiple protocols and chains, it becomes operationally crippling.

Why DeFi Makes Everything Harder

DeFi positions are fundamentally different from centralized exchange balances. An LP position on Uniswap is not a number in an account. It is a dynamic, multi-asset exposure that accrues fees, shifts in composition, and can behave very differently depending on market conditions. A restaking position on EigenLayer involves layers of delegation and reward accrual that no traditional portfolio system was built to parse.

The result is that fund managers with sophisticated DeFi strategies often cannot answer basic questions about their own portfolios without hours of manual work. What is my current NAV? How did this position perform over the last quarter? What is my actual exposure by protocol, by chain, by strategy?

These are table-stakes questions for any institutional operation. And for too many DeFi-native funds, answering them accurately is still a real challenge.

The LP Reporting Gap

The problem compounds beyond internal visibility. Fund managers need to report to their LPs. Allocators increasingly expect clean dashboards, auditable performance data, and institutional-grade analytics. Three-year track records are starting to matter as funds launched in 2022 hit that milestone.

If you cannot produce a clean Sharpe ratio, proper drawdown analysis, or NAV history that accounts for your DeFi positions, you are not just operationally inefficient. You are losing credibility with the people who write the checks.

Legacy portfolio management systems were not designed for this. Most were built for a world where positions live on centralized exchanges and assets have tidy ticker symbols. Bolting DeFi onto these systems usually means wallet scanning at best, which tells you token balances but nothing about the actual nature of your positions.

Why AI Is the Only Way to Keep Up

DeFi moves fast. New protocols launch weekly. Existing ones upgrade, fork, or change their mechanics. Any system that relies on purely manual protocol integration will always be behind.

This is where AI becomes essential, not as a buzzword, but as a practical necessity. At Renesis, we use AI-powered categorization to automatically identify and classify DeFi positions at the most granular level. On top of our 80+ manually mapped protocols, our AI layer ensures that every other protocol a fund interacts with is recognized, categorized, and reflected accurately in the portfolio view.

The DeFi landscape is simply too fast-moving and too fragmented for a team of engineers to keep up manually. AI lets a small, focused team cover the entire surface area of DeFi without sacrificing depth or accuracy. It is how a seven-person company can deliver coverage that legacy vendors with 200-person teams struggle to match.

What Institutional DeFi Infrastructure Actually Needs

From talking to dozens of fund managers over the past two years, a few requirements keep coming up.

Unified visibility across CeFi and DeFi. Not two dashboards, not a spreadsheet that combines exports from three different tools. One view that understands both worlds natively.

Protocol-level intelligence. The system needs to understand what a Pendle yield token is, how an Aave lending position works, and what funding rates on Hyperliquid look like. Not just that tokens exist in a wallet. This means deep protocol-by-protocol mapping paired with AI categorization to handle the long tail.

LP-facing reporting that looks professional. Configurable dashboards that give allocators the metrics they need without requiring the fund manager to build them from scratch every quarter.

And execution infrastructure that connects to the same portfolio view. Managing your portfolio in one system and executing trades in another, with no shared context, should be a thing of the past.

Try It Today

This is exactly the problem we built Renesis to solve. A DeFi-native portfolio management and execution platform for the fund manager who trades across both centralized and decentralized venues. It is fully live, free to sign up for, and already managing real portfolios.

If you are running a liquid fund and spending more time reconciling data than making investment decisions, head to renesis.fi and connect your first wallet or exchange account in minutes. No sales call required, no procurement cycle. Just sign up and see your portfolio the way it should look.

The crypto fund landscape is maturing fast. The infrastructure should match that ambition.