Exponential, a risk assessment and discovery platform for decentralized financial investments, announced today that it has raised $14 million in seed funding to simplify entry into the new crypto ecosystem that has otherwise been fraught with complexity and danger.
Crypto-focused venture capital firm Paradigm led the round with participation from other big names in the industry including Haun Ventures, FTX Ventures, Solana Ventures, Polygon, Circle Ventures and more than 80 angel investors.
Decentralized finance, or DeFi, enables peer-to-peer transactions performed using blockchain technology, allowing people to participate in financial services without the need for middlemen like banks or brokers. Using DeFi, software regulates the movement of currency tokens between parties who can buy, sell, trade, invest, and lend among themselves — all ways that typically involve central authorities like banks.
“There’s just one problem,” Exponential co-founders Driss Benamour, Driss Benamour, and Greg Jizmagian said in the announcement. “Investing in DeFi is a labyrinthine hellscape for even the most dedicated crypto evangelist to lose themselves in. Finding legitimate projects, executing trades, moving funds between chains, tracking performance, and filing taxes is more than enough to turn off most investors.”
Investing and trading in DeFi is not without risk. More than $2 billion was lost to hacks, fraud, and exploits in the first half of 2022, according to a report by blockchain security firm CertiK. This included the infamous attack on the Ronin Network, the blockchain network behind the Axie Infinity game. nearly $615 million looted and $182 million stolen from Beanstalk Farms in a “flash loan” attack.
That doesn’t even include more recent hacks that have hit DeFi markets, such as: B. $160 million stolen from Wintermute, a major cryptocurrency market maker that was hit in mid-September.
To help its clients navigate DeFi’s choppy investing waters, Exponential’s platform offers institutional risk assessment with a rating system for wallets, protocols, coins, and investment pools. A is the best and F is the worst. Through the platform, users can decide whether to invest their tokens and also get an assessment of their current portfolio.
The platform also allows users to find and compare revenue opportunities across multiple blockchains and protocols using a curated list created by Exponential’s team of experts.
The co-founders said this is just the beginning and that the vision for the platform is to unleash “financial freedom”. Soon, the platform will also add the ability to invest in DeFi liquidity pools across major blockchains directly on the custody platform itself. Users no longer need to dig into complex decentralized exchanges or third-party apps. Instead, they can make their investments directly through Exponential.
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