According to CoinDesk, Exponential.fi, a renowned crypto risk assessment platform, is introducing a new suite of products aimed at simplifying decentralized finance (DeFi) for retail traders. The platform, which has been in beta testing for a year, is designed to be a comprehensive hub for traders to identify, understand, and invest in crypto opportunities.
Exponential's CEO and co-founder, Driss Benamour, explained that the company was established two and a half years ago when his co-founder, Exponential president Medhi Labbar, faced challenges transitioning funds into DeFi investments. The company, which secured $14 million in a 2022 funding round led by crypto venture firm Paradigm, initially served as a platform for investors to discover DeFi opportunities and evaluate their risk. The new platform differs from its predecessor by enabling users to invest directly from the app.
Benamour described the new platform as 'the safest and easiest way to invest in DeFi with institutional grade security.' Exponential will continue to focus on risk assessment, providing detailed risk information alongside each investment opportunity listed on the platform. The platform is also designed for retail traders who may lack experience in blockchain investing, featuring a user interface and features tailored to a broad audience.
Exponential is committed to a regulation-forward approach, differing from previous DeFi yield platforms. The company is registered as a money service business with the U.S. Financial Crimes Enforcement Network (FinCEN) and requires certain personal information from users to operate. Like other platforms, it temporarily holds user funds before investing them on-chain, a step designed to streamline the investment process and eliminate network gas fees. However, Benamour assures that 'everything is also trackable on-chain. You can see your wallet as a user on-chain, and you can see funds move and get receipts from smart contracts.'
Despite criticism that platforms like Exponential undermine the decentralization at the heart of DeFi, Labbar stated that they may transition to a fully decentralized platform when possible. For now, they prioritize access and believe that introducing a layer of centralization is the easiest way to unlock the promise of DeFi.