Place/Date: Tortola, BVI - April 14th, 2021 at 4:51 am UTC · 3 min read
Contact: Gil Shpirman, CEO, Source: Don.Key Finance
With the tailwinds of a fresh $2.2 million fundraising at its back, Don-Key aims to become the eToro of DeFi by building a comprehensive social platform for yield farming designed to improve accessibility and magnify yield farmers’ potential.
Decentralized finance (DeFi) is finally capitalizing on blockchain’s ability to displace traditional centralized finance (CeFi), but the road to adoption remains long despite its progress.
As DeFi’s popularity grows with time, it is shining a spotlight on one of the most complex yet vital ecosystem activities: yield farming. For the uninitiated, yield farming is effectively like depositing money in a certificate of deposit (CD) that earns periodic interest when locked up. However, unlike CD yields which typically only yield a few percent annually, yield farming returns (APY) can be multiple magnitudes more profitable.
Like most things blockchain, the learning curve for this Wild West of DeFi is steeper than most. Fortunately, that all is changing as Don-Key embraces eToro’s social trading model in the form of a DeFi yield farming platform.
Like eToro disrupted investing by bringing social money management to financial markets and cryptos, Don-Key aims to do the same with its yield farming platform. By flattening the learning curve and making the concept more accessible to a broader swath of cryptocurrency users, the platform intends to help both farmers and “hodlers” capitalize on these potentially outsized returns.
After recently concluding a successful $2.2 million round of capital from a consortium of investors, including AU21, Black Edge Capital, Genesis Block Ventures, Morningstar Ventures, MoonWhale, Solidity Ventures, and Spark Digital Capital, Don-Key is busily taking a page out of eToro’s book.
Like copy-trading, users of Don-Key’s platform will be able to engage in copy-farming by sorting through yield farmers on a leaderboard that displays the top performers or based on parameters such as reputation. For users allocating crypto, costs will be lower relative to existing farming techniques thanks to investor pooling. Moreover, the farmers and liquidity providers who join the platform will enjoy tokenized rewards.
By simplifying the interface and the experience for the uninitiated, Don-Key intends to support all the platform’s stakeholders. Instead of hazarding the yield hunt and smart contract vulnerabilities along with constantly fluctuating returns, new entrants can back successful farmers. By extension, the farmers themselves can expand their access to capital to generate higher returns.
Through this incentivization and gamification model, farmers must constantly be on the hunt for opportunities. Due to the rigors of yield farming that make it very unapproachable for users with smaller amounts of capital, this model will encourage more DeFi participation and, ultimately, adoption. With fresh funds to support its ambitions, Don-Key will continue platform development in the meantime, with rollout plans yet to be announced.
Don-key.finance was founded in 2020, at the beginning of the yield farming craze, with a very clear vision of bringing the simplicity of ‘copy trading’ to the complex world of DeFi Yield Farming. An initiative that came from real necessity, Don-key’s founders are DeFi enthusiasts from Israel, Cyprus, Ukraine and India with a true passion to democratize yield farming and helping crypto users around the world stay up to date with the constant evolution of the yield farming space.