Cega Finance, a decentralized finance platform, has raised more than $4 million in seed capital from companies like Dragonfly Capital Partners, Coinbase Ventures, Alameda Research, and Solana Ventures.
Cega Finance completes a $4 million funding round
Cega seeks to bring exotic derivative features to cryptocurrency. To date, the Cega team consists of several forex experts, experienced developers, founders of Y Combinator, and a former options trader. The company’s main product is an application created on the Solana network that combines basic and advanced options so that investors can access exclusive package offers.
The first exotic option offered by the company is the so-called Fixed Coupon Note, which offers retail investors higher yields and compounded returns. It also provides discount coverage to market makers. Arisa Toyosaki, a former derivatives trader and CEO and co-founder of Cega, said in an interview:
Defi derivatives have seen explosive growth over the past year, and we find that the market is still in its infancy. Defi has experienced >300 percent CAGR in the last two years and currently has four million users. We believe that a product offering that generates high returns and better security for users during the volatile period of crypto expansion will be essential for the growth of the entire ecosystem.
The company plans to use the money received to further develop its technology and establish a strong community focused on statistical modeling, user education and product offerings. Tom Schmidt, general partner at Dragonfly Capital Partners, said in a statement:
Blind is changing space defi. Defi goes through a process where a team creates a groundbreaking financial innovation, which in turn spurs the creation of an entirely new product category and grows the overall market. We have seen this with Uniswap for AMM and Composite for FX markets, and I think the Cega team will do this for exotic derivatives and structured products, a much needed breakthrough in the defi industry. We are super excited to support them and move this entire market forward.
Joey Krug, Pantera’s joint venture officer, also added his two cents to the mix, explaining:
Cega is opening up a new layer of untapped potential in decentralized derivatives, where we see a multi-billion dollar opportunity to disrupt traditional finance. Exotic options have proven to be valuable tools for transforming and managing risk. Now, defi gives us the opportunity to redesign these tools with greater transparency and efficiency.
The next step in finance?
Brian Lee, partner at Alameda Research, mentioned:
Alameda is pleased to support Cega because we believe exotic derivatives are the next evolution in defi. In traditional finance, we have seen an innovation-driven market expansion in derivatives and we believe the Cega team can push these boundaries for cryptocurrencies.