DeFi Inheritance Is Harder Than Regular Crypto

Inheriting DeFi positions is significantly more complex than inheriting simple cryptocurrency holdings. Regular crypto inheritance requires seed phrases and wallet access. DeFi inheritance requires all of that PLUS understanding of:

• Specific protocols and their interfaces • Liquidity pool positions and impermanent loss • Staking and unstaking procedures (some with lock-up periods) • Lending and borrowing positions (which may require repayment before withdrawal) • Yield farming strategies that may need active management • Governance tokens and voting positions

If your heir doesn't understand these concepts, your DeFi positions could lose value, accrue unexpected fees, or be liquidated before they can act.

Documenting Your DeFi Positions

For each DeFi position, document:

• Protocol name and URL (e.g., Uniswap, Aave, Compound) • Network (Ethereum mainnet, Polygon, Arbitrum, etc.) • Position type (liquidity providing, staking, lending, borrowing) • Assets involved (token names and approximate values) • Risks (impermanent loss exposure, liquidation thresholds for borrowing) • Withdrawal procedure (step-by-step instructions for exiting the position) • Time constraints (lock-up periods, vesting schedules)

Store this documentation in your ZeroLatch vault alongside your wallet seed phrases. Update it whenever you significantly change your DeFi positions.

Simplification Strategy

Make your heir's job easier by simplifying your DeFi exposure:

• Consolidate positions on fewer protocols • Avoid obscure protocols — stick to well-known, audited platforms with good documentation • Write simple instructions — "Go to app.aave.com, connect wallet, click 'Withdraw' next to each asset" • Consider converting to simple holdings — as you age or if health concerns arise, convert complex DeFi positions into straightforward token holdings that only require wallet access • Use a dead man's switch — ZeroLatch can release your DeFi documentation automatically, giving your heirs timely access to position information before time-sensitive positions accrue losses