VeradiVerdict - Issue #237
Investing can be a complex and dangerous game in the decentralized finance (DeFi) world. The user journey is plagued by the complexity of navigating through the countless options available and the constant fear of losing funds to malicious actors or bugs in smart contracts. This risk is real, as demonstrated by the numerous high-profile hacks and scams that have plagued the DeFi space in recent years. Luckily, a new solution is attempting to streamline a future for safer DeFi. Exponential, a new decentralized finance investment platform that makes it easy to discover, assess, and invest in DeFi, recently raised $14 million in seed funding from major players in the crypto industry. Early investors include Paradigm, Haun Ventures, Solana Ventures, Polygon, Circle Ventures, and over 80 angel investors.
As the DeFi industry grows, so does risk — $2 billion was lost in the first half of 2022, a clear indication that DeFi is not immune to attacks, scams, and exploits. The attack on the Ronin Network resulted in the loss of almost $615 million, one of the largest losses in DeFi to date. The theft of $182 million from Beanstalk Farms is another example of how DeFi investors can easily fall victim to malicious actors. These losses are not just limited to small investors. Large and well-established players in the DeFi space are openly vulnerable to these risks. Exponential has identified over $3 billion in funds still invested in high-risk projects today. The decentralized nature of DeFi protocols, combined with the lack of regulatory oversight, has created a breeding ground for bad actors.
Investing in DeFi can be like navigating a dense forest — full of twists, turns, and hidden traps. With so many projects to choose from, and a never-ending stream of trades and transactions to monitor, it is no wonder that even the most seasoned crypto enthusiasts can feel daunted by the task. That is where Exponential comes in. Exponential understands that you do not want to spend all your time and energy figuring out where to put your money. You want to be confident that you're making the right choice! Their platform’s mission is to simplify the process of DeFi investing and help you make informed decisions. Whether you are a beginner or an experienced crypto trader, Exponential may be your guide to a more successful, less stress-filled DeFi journey.
Exponential provides its users with an institutional-grade risk assessment system that distills thousands of risk vectors into a simple letter grade so DeFi participants can evaluate risk at a glance. Their debut product, Rate My Wallet, analyzes the risk of wallet holdings so participants can take immediate action to strengthen their portfolio.
The platform goes beyond just grading opportunities, they also provide expert insights and curations, making it easier for users to identify potential opportunities. Exponential analyzes risk holistically, taking various factors into account including project development and community adoption, to provide users with a comprehensive look at the potential risks and rewards of different opportunities. Currently, their ratings have covered 88% of assets and are on track to hit 90% of protocols within the next couple of weeks by Total Value Locked (TVL). Exponential's team of experts has years of experience in the crypto and finance industries. They use their expertise to analyze the risk of DeFi projects and bring them to the forefront for DeFi participants.
Additionally, Exponential allows users to find and compare yield opportunities across multiple blockchains and protocols, making it easier for DeFiparticipants to identify the best opportunities for them.
The platform’s educational resources and community of like-minded investors support users on their DeFi journey. With Exponential, users no longer have to sift through endless amounts of information and data to make informed decisions. Instead, they have access to everything they need in one convenient platform, making DeFi simpler and more accessible for everyone.
Exponential was founded by Driss Benamour, Mehdi Lebbar, and Greg Jizmagian. The co-founders are seasoned veterans in the world of finance and technology with years of experience in institutional finance, portfolio management, and software engineering. They believe that DeFi has the power to unlock financial freedom and level the playing field for all, regardless of their background or economic status. With a deep understanding of the challenges facing DeFi participants, the co-founders have made it their mission to bring the benefits of DeFi to the masses, making it easy and accessible for everyone to participate in the new world of decentralized finance.
There’s no doubt that investing in DeFi can be a confusing and risky process. Still, Exponential is making it easier and safer for users to make informed decisions. By providing a one-stop shop for all things DeFi, Exponential is genuinely revolutionizing the world of decentralized finance. The ability to participate in DeFi liquidity pools directly on the platform will simplify the process of participating in DeFi and make it easier for users to get started. Moreover, eliminating the need for complex third-party decentralized exchanges streamlines the process and reduces the risk of errors or security breaches. Through it all, Exponential is positioning itself as the go-to destination for simple, secure, and smart DeFi, potentially unlocking financial freedom for its users.
0 Ventures is an investor in Exponential. Pantera Capital Puerto Rico Management, LP and its affiliates (“Pantera”) makes investments in crypto assets and in blockchain-related companies. Pantera and/or its affiliates or personnel may be an investor in, or have relationships or other business arrangements related to, certain instruments, companies and/or projects discussed herein. This document does not contain any advertisement for Pantera’s investment advisory services, or any other services or products, whether provided by Pantera or otherwise. The information and opinions presented in this document are solely those of Paul Veradittakit; they do not represent, and should not be interpreted as representative of, the views of Pantera or any other individual working for Pantera, and do not represent investment, legal, tax, financial, or any other form of, advice or recommendations. Neither Pantera nor Mr. Veradittakit is acting, or purports to act, as an investment adviser or in a fiduciary capacity with respect to any recipient of this paper. Information contained in this document is believed to be reliable, but no representation is made regarding such information’s fairness, correctness, accuracy, reasonableness or completeness. There is no obligation to update this document or to otherwise notify a reader if any matter stated statement or information contained here changes or subsequently is shown to be inaccurate. Nothing contained herein constitutes any representation or warranty as to future performance of any financial instrument or company. Forward-looking statements should not be relied upon, and performance or outcomes may differ materially from what is contemplated herein. Opinions included here incorporate subjective judgments or may be based on incomplete information. This document does not constitute or contain an offer to sell or a solicitation to buy any securities or a recommendation to enter into any transaction, and no reliance should be placed on this document in making investment decisions.
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Hi, I’m Paul Veradittakit, a Managing Partner at Pantera Capital, one of the oldest and largest institutional investors focused on investing in blockchain companies and cryptocurrencies. I’ve been in the industry since 2014, and the firm invests in equity, early stage token projects, and liquid cryptocurrencies on exchanges. I focus on early-stage investments and share my thoughts on what’s going on in the industry in this weekly newsletter.
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