Exponential.fi Wants to Make It Easier to Invest in DeFi

The new platform, recently accessible to a select group of beta testers for approximately a year, intends to function as a comprehensive hub for traders to discover, educate themselves about, and invest in cryptocurrency possibilities.

Dr. Driss Benamour, the CEO and co-founder of Exponential, shares that the company was established roughly two and a half years ago. At the time, his fellow co-founder and Exponential’s president, Medhi Labbar, was overseeing an investment fund for friends and family. He encountered challenges in transferring their funds into decentralized finance opportunities.

In an interview with CoinDesk, Benamour expressed his observation of the man’s distress. The man was juggling multiple wallets, a total of twelve, and was keeping track of their balances in an intricate spreadsheet. Benamour was taken aback, remarking, “This is a ridiculous amount of work!” or “The magnitude of his task was overwhelming.”

As a crypto investor, I’ve come across many platforms aimed at helping us discover DeFi opportunities and assess risks. One of them is Exponential, which recently secured $14 million in funding led by Paradigm. Initially, it functioned as a go-to destination for investors seeking potential DeFi investments. However, the new version of this platform stands out with its enhanced features. Instead of merely providing investment suggestions, users can now invest directly through the app itself. This added convenience makes the investing process smoother and more efficient for crypto enthusiasts like us.

In my investigation, I discovered that Exponential’s latest platform is advertised as the most secure and convenient option for institutional investors looking to enter the Decentralized Finance (DeFi) realm.

As a crypto investor using Exponential, I can expect a strong focus on risk assessment. The platform will provide clear and detailed risk information alongside every investment opportunity. With a user-friendly interface and features tailored to both experienced and novice traders, Exponential aims to cater to a wide audience, including those new to investing in blockchains.

To ensure universal accessibility, Benamour emphasized the need to approach it from various perspectives at once. This translates to one-click trading, seamless funding through cryptocurrencies or traditional fiat money, user-friendly portfolio management, effortless tax handling, and more. We designed a comprehensive platform enabling anyone to invest in Decentralized Finance (DeFi) and earn yields.

Benamour remarked, “It’s impossible to transfer $100 from your bank account into a Uniswap pool in under 24 hours aside from using Exponential. Such is the enchantment behind our work.”

Exponential adheres to regulatory guidelines and intends to distinguish itself from previous troubled DeFi yield projects by pursuing a new, compliant path.

Exponential, which is classified as a money services business by the United States Financial Crimes Enforcement Network (FinCEN), needs to obtain specific personal details from its users in order to function effectively.

As a crypto investor using Exponential, I can confirm that the platform holds my funds temporarily before executing trades on-chain. This measure aims to simplify the investment process by eliminating network gas fees during each transaction. It is essential to note that Exponential charges a fee of 0.2% for every trade made through its platform. Moreover, I appreciate the transparency offered by the system, as all transactions are recorded on-chain. Consequently, investors can monitor their wallets and observe funds moving between accounts, along with receiving receipts from smart contracts.

Critics argue that intermediaries such as Exponential, which connect banks with decentralized finance (DeFi) through blockchains, can potentially weaken the very decentralization principle that underpins DeFi.

As an analyst, I would rephrase it as follows: “I recognize the potential of a fully decentralized platform, but currently, we are prioritizing access over complete decentralization. Introducing a layer of centralization seems like the most effective way to make DeFi’s promise of freedom a reality for our users at this stage.”