Overview of DeFi investment platform Exponential, which raised $14 million in funding
Exponential helps investors better discover, assess, and invest in DeFi projects through features such as risk assessment systems, expert insights, and one-stop services.Original Title: Exponential
Author: Paul Veradittakit, Partner at Pantera Capital
Compiled by: aididiaojp.eth, Foresight News
In the world of DeFi, investing is a complex and risky game. The mixed bag of assets, malicious activities, and smart contract vulnerabilities can lead to ongoing concerns for investors about losing their funds. This risk is real, as evidenced by the numerous high-profile hacks and scams that have plagued the DeFi space in recent years. Fortunately, a new solution is attempting to paint a safer future for DeFi. Exponential is a new decentralized finance investment platform designed to easily discover, assess, and invest in DeFi projects. It recently completed a $14 million seed round of funding, with investors including Paradigm, Haun Ventures, Solana Ventures, Polygon, Circle Ventures, and over 80 angel investors.
As the DeFi industry continues to evolve, the risks are also increasing. In the first half of 2022, the DeFi sector lost nearly $2 billion due to attacks, fraud, and exploits. The attack on the Ronin network resulted in a loss of nearly $615 million, marking one of the largest losses in DeFi to date. The $182 million theft from Beanstalk Farms is another example of how easily DeFi investors can become victims of malicious actors. These losses are not limited to general investors; large, mature participants in the DeFi space are also vulnerable to these risks. Exponential identifies that there is still over $3 billion locked in dangerous projects. The decentralization of DeFi protocols, combined with a lack of regulation, creates a breeding ground for bad actors.
Investing in DeFi is like navigating through a dark forest, filled with twists and hidden traps. With so many projects to choose from and an endless stream of data and transactions to monitor, even the most experienced crypto enthusiasts can feel daunted by the task. This is where Exponential comes in, helping investors save time and effort in deciding where to put their money, thereby simplifying the DeFi investment process and assisting investors in making informed decisions, whether they are beginners or seasoned cryptocurrency traders.
Exponential provides its users with an institutional-grade risk assessment system that distills thousands of risk vectors into a simple letter grade, allowing DeFi investors to quickly assess risk at a glance. Their first product, "Rate My Wallet," analyzes the risks of held wallets so that participants can take immediate action to enhance the security of their portfolios.
The platform not only scores investment decisions but also offers expert insights and curation, making it easier for users to identify potential opportunities. By analyzing risks and considering various factors, including project development and community adoption, Exponential helps users understand the potential risks and rewards of different opportunities. Currently, their ratings cover 88% of assets and are expected to reach 90% in the coming weeks. The expert team at Exponential has years of experience in the crypto and financial industries and leverages their expertise to analyze the risks of DeFi projects, bringing them to the forefront for DeFi participants.
Additionally, Exponential allows users to search for and compare yield opportunities across multiple blockchains and protocols, making it easier for DeFi investors to identify the best opportunities for themselves.
The platform's educational resources and investor community support users on their DeFi journey. Moreover, with Exponential, users no longer need to sift through endless information and data to make informed decisions. Instead, they can access everything they need on a convenient platform, making DeFi simpler.
Exponential was founded by Driss Benamour, Mehdi Lebbar, and Greg Jizmagian, all of whom are seasoned professionals with extensive experience in finance and technology, having years of experience in institutional financing, portfolio management, and software engineering. They believe that DeFi has the potential to unlock financial freedom and create a level playing field for everyone, regardless of background or economic status. With a deep understanding of the challenges faced by DeFi participants, the co-founders' mission is to bring the benefits of DeFi to the masses, allowing everyone to easily and conveniently engage in the new world of decentralized finance.
Undoubtedly, investing in DeFi can be a confusing and risky process, and Exponential aims to make it easier and safer for users to make informed decisions. By providing a one-stop service for DeFi, Exponential is truly revolutionizing the world of decentralized finance. The user experience of participating in DeFi liquidity pools directly on the platform will simplify the process of engaging with DeFi and make it easier for users to get started. Furthermore, eliminating the need for complex third-party decentralized exchanges streamlines the process and reduces the risk of errors or security vulnerabilities. Thus, Exponential positions itself as the preferred tool for simple, secure, and smart DeFi.
