HomeAltcoin NewsDefi Platform Cega Earns a Lotta Money

Defi Platform Cega Earns a Lotta Money

Date:

Related stories

It’s Not Just Degens, Institutions Love Memecoins Too

In a report released by Bybit on June 4,...

Polygon Labs Acquires Third ZK Startup, Taking Its ZK Investments to over $1 Billion

Polygon Labs has acquired Toposware, a Zero-Knowledge (ZK) startup,...

Solana (SOL) Price Analysis: Dips Attractive Near $135

Solana price started a downside correction from the...
spot_imgspot_img

Cega Finance – a decentralized finance platform – has earned more than $4 million in seed money from firms such as Dragonfly Capital Partners, Coinbase Ventures, Alameda Research, and Solana Ventures.

Cega Finance Completes $4 Million Funding Round

Cega seeks to bring exotic derivative capabilities to crypto. At press time, the Cega team consists of several monetary experts, experienced developers, Y Combinator founders, and a former options trader. The company’s staple product is an application built on the Solana network that combines both basic and advanced options so investors can gain access to unique, packaged offerings.

The first exotics option offered by the firm is what’s called a fixed coupon note, which offers retail investors higher yields and compound returns. It also provides discounted hedges to market makers. Arisa Toyosaki – former derivatives trader and the CEO and co-founder of Cega – said in an interview:

Defi derivatives have seen explosive growth in the last year, and we find that the market is still in its early days. Defi experienced >300 percent CAGR in the last two years and has four million users today. We believe a product offering which generates high yields and better safety for users during the volatile period of crypto expansion will be essential to the growth of the entire ecosystem.

The company is planning to use the money it’s received to build out its technology further and establish a strong community that focuses on statistical models, user education, and product offerings. Tom Schmidt – general partner at Dragonfly Capital Partners – said in a statement:

Cega is changing the defi space. Defi goes through a process where one team creates an innovative breakthrough financial primitive, which in turns spurs the creation of a whole new category of products and grows the overall market. We’ve seen this with Uniswap for AMMs and Compound for money markets, and I think the Cega team is going to do this for exotic derivatives and structured products, a badly needed gap in the defi industry. We’re super excited to be backing them and moving this entire market forward.

Joey Krug – co-chief investment officer of Pantera – also threw his two cents into the mix, explaining:

Cega is opening a new layer of untapped potential in decentralized derivatives, where we see a multi-trillion-dollar opportunity to disrupt traditional finance. Exotic options have proven to be valuable tools for transforming and managing risk. Now, defi gives us the chance to recast those tools with greater transparency and efficiency.

The Next Step in Finance?

Brian Lee – a partner at Alameda Research – mentioned:

Alameda is excited to support Cega because we believe that exotic derivatives are the next evolution in defi. In traditional finance, we’ve seen market expansion driven by innovation in derivatives and we believe that the Cega team can push these frontiers for crypto.

Nick Marinoff
Nick Marinoffhttps://www.livebitcoinnews.com/
Nick Marinoff is currently a lead news writer and editor for Money & Tech, a San Francisco-based broadcasting station that reports on all things digital currency-related. He has also written for a number of other online and print publications including Black Impact Magazine, EKT Interactive, Seal Beach USA and Benzinga.com, to name a few. He has recently published his first e-book "Take a 'Loan' Off Your Shoulders: 14 Simple Tricks for Graduating Debt Free" now available on Amazon. He is excited about the potential digital currency offers, particularly its ability to finance unbanked populations and bring nations together financially.

Subscribe

- Never miss a story with notifications

- Gain full access to our premium content

- Browse free from up to 5 devices at once

Latest stories

spot_img