Yoni Assia, co-founder of eToro, who got into DeFi.
The investment platform eToro, which works as a “social media” and also offers cryptocurrencies, will enter into decentralized finance (DeFi). The company says it will offer long-term exposures to key projects for its 23 million registered users.
With decentralized finance, eToro tries to differentiate itself from those who only work with cryptocurrency trading. This is, by the way, a path that other companies in the sector seem to be starting to follow.
A Coinbase, for example, tried to launch a product in which it would pay 4% for those who would lend their coins to the stock exchange. Which, in turn, would lend to third parties. But the US Securities and Exchange Commission (SEC) blocked the initiative.
eToro’s portfolio includes 11 DeFi cryptoactives. Among them there are, for example, Ether (ETH), Uniswap (UNI), Chainlink (LINK), Aave (AAVE), Compound (COMP) and Yearn.finance (YFI).
According to Dani Brinker, investment portfolio leader at eToro, “Thousands of cryptoactives have emerged in recent months. But for those who don’t have time to find out about each one of them, the market looks like a minefield”. The platform chooses assets and its model allows investors to exchange information about their strategies.
The company, which is based in Israel, claims that it had gross revenues of $605 million in 2020. Therefore, an annual growth of 147%. The number of new registered users grew by 5 million. Last January, it had more than 75 million operations, says the company.
Yoni Assia, co-founder of the company, says he uses his earnings at eToro in social projects.