Exponential, a prominent crypto risk assessment platform, is introducing a new suite of products aimed at demystifying decentralized finance (DeFi) for retail traders. The platform has been in beta testing with a select group of users for the past year and is now set to provide a comprehensive solution for traders to explore, learn, and invest in crypto opportunities.
Driss Benamour, the CEO and co-founder of Exponential, shared that the company’s inception was driven by the challenges faced by his co-founder, Medhi Labbar, in navigating DeFi investments for friends and family. This experience led to the development of a platform that offers insights into DeFi opportunities and risk assessment. With a recent funding round of $14 million led by Paradigm, Exponential is gearing up to launch a user-friendly platform that enables direct investments.
The new platform emphasizes safety and ease of use, positioning itself as the “safest and easiest way to invest in DeFi with institutional-grade security.” It offers detailed risk assessments for each investment opportunity listed, catering to retail traders with varying levels of experience in blockchain investments.
Exponential’s user interface and feature set are designed to appeal to a broad audience, making DeFi accessible through one-click trading, seamless funding options with crypto or fiat, intuitive portfolio management, and simplified tax processes. Benamour highlighted that Exponential aims to remove barriers to entry, allowing users to enter DeFi investments swiftly and efficiently.
Addressing concerns about regulatory compliance, Exponential is registered as a money service business with FinCEN and collects necessary user information to operate securely. The platform temporarily holds user funds before executing on-chain investments, aiming to streamline the process and eliminate network gas fees. Exponential charges a 20 basis points fee on every trade, while ensuring transparency by making all transactions trackable on-chain.
While some critics argue that platforms like Exponential introduce centralization in a decentralized ecosystem, the company asserts that its current approach prioritizes accessibility and user experience. Labbar mentioned potential plans to transition to a fully decentralized model in the future but emphasized the importance of unlocking DeFi’s promise of financial freedom through the current centralized layer.