Exponential, a decentralized-finance (DeFi) investment discovery and risk assessment platform, has raised $14 million in a seed funding round that was led by crypto-focused investment firm Paradigm.
Hackers exploited code flaws in increasing numbers of DeFi projects this past year. According to a Chainalysis report, at least $2B in cryptocurrency was lost due to cross-chain Bridges. This software allows users to move assets between blockchains.
This tool allows users to compare investments and assess the risks involved in decentralized finance.
Exponential cofounders Mehdi and Mehdi Lebbar wrote that DeFi investing is a confusing maze in which even the most dedicated crypto evangelists can get lost. Investors will be scared off by the difficulty of finding legitimate projects, filing taxes, and moving funds across chain.
Exponential’s institutional-grade risk assessment system analyzes user’s investments to determine potential risks in the underlying assets, protocols, and blockchains. Users can also compare yield opportunities across major protocols and chains. Exponential will soon offer customers the opportunity to directly invest in DeFi projects via its custodial platform.
Haun Ventures, a VC firm founded by Katie Haun, was also part of the round. They were the venture-capital arm for cryptocurrency exchange FTX, Solana, Polygon and the investment arm for USDC stablecoin issuer Circle.
