Cega, a DeFi-centric derivatives platform specializing in exotic options, has announced a $5 million raise led by Dragonfly Capital, Pantera Capital, and Robot Ventures. Having raised $4.3 million in its initial seed round in March 2022, it means that the protocol’s total capital raise to date is $9.3 million. The funding was conducted through the use of a Simple Agreement for Future Equity and a companion side letter.
Cega’s approach to DeFi and its expansion plans
Cega has said that it will use the newly-acquired funds to speed up the development of new DeFi innovative primitives and to establish a trading team with experts in exotic derivatives. Also, it will introduce new products, such as leveraged options, via the protocol on Ethereum. Next week, Cega will also introduce Tras Mobian, a new market-making company that will trade in both vanilla and exotic crypto derivatives.
Exotic options contain more customized terms and conditions than their “regular” counterparts, which allow buyers and sellers to transact at a predetermined price and time. Cega created a decentralized application that packages “structured” alternatives for DeFi consumers by combining the features of both simple and advanced options.
Cega’s exotic structured product is attractive to retail investors because of its high yield, low-risk profile, and compounded yields. It’s useful for market makers since they can get a cheaper hedge on their portfolio and make personal gains from hedging transactions.
With the purpose of creating exotic structured products that aim to create yields with built-in downside protection for investors, Cega has assembled a team of former derivative traders, developers, and founders, and the platform has a community of specialists in the industry. It has sparked a market for unusual options with crypto underpinning, and its volumes and TVL rank 4th on Solana and 4th across all chains.