Cega Receives $4.3M from Coinbase and Alameda for First Exotic DeFi derivatives  

Cega Finance, which was founded in March 2008, announced that it had raised $4.3million through a seed round under Dragonfly Capital Partners. Participation was also provided by various DeFi and cryptocurrency VCs such as Pantera Capital and Coinbase Ventures, Alameda Research and Solana Ventures.

Arisa Toyosaki was a former UBS derivatives trader and the platform now has a value of $60 million. Cega aims to build the next evolution in DeFi derivatives by introducing “exotic derivative capabilities” to the space, according to the announcement.

Exotic DeFi products

Cega’s DeFi derivatives market is still relatively unknown. It traditionally includes futures, options and leverage.

The Solana-based platform currently offers basic call/put options with advanced characteristics to create “packaged offerings” for investors. A “fixed coupon note” is one of Cega’s exotic offerings. It involves a mix of calls and puts with knock-in/knock-out barriers. When traders expect prices to fall, a Put option is used. A Call is when they anticipate an increase.

Retail investors can benefit from these exotic structured products as they offer greater yield, built in downside protection, compounded returns, and better return potential.

Tom Schmidt, General Partner of Dragonfly Capital Partners. Cega is changing DeFi space, before adding:

“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.”

Joey Krug is Pantera Capital’s Chief Investment Officer. He said that exotic options have been valuable tools in managing and transforming risk. “Now DeFi gives us the chance to re-cast those tools with greater transparency and efficiency,” he added.

March Solana Launch

The Cega platform is set to launch in beta later this month on Solana’s testnet. It intends to expand the product into the industry-standard Ethereum Virtual Machine compatible ecosystem shortly thereafter.

Cega currently has four co-founders. These include traders who have experience pricing exotic options.

As the underlying assets and crypto market have fallen, DeFi’s total value has seen a drop in the past few months. DeFi Llama reports that TVL currently stands at $200 billion. This is 22% less than its peak in early December.

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