Exponential has launched a DeFi platform called YO — short for “yield optimizer” — with the hopes of revolutionizing the space for both pros and beginners.
“DeFi is an incredible ecosystem because it provides value that was previously reserved for banks to users. As a user, I can do market making, as a user I can do lending, as user I do staking, as a user can do bridging and earn yield through these jobs,” said Exponential co-founder and CEO Driss Benamour. “The problem is it’s complex, fragmented and can be risky if you don’t manage it properly.”
YO aims to address those issues by simplifying DeFi through a platform that “deploys capital across chains to wherever the best opportunities” are on Base, Ethereum, and Solana, according to a statement. “YO taps into all major yield primitives across protocols like Morpho, Pendle, Reserve, Aerodrome, and more.”
The platform also leverages Exponential’s “standardized risk framework,” something that has been in the works for years. After the firm raised $14 million in a 2022 seed round led by prolific crypto VC Paradigm, Exponential created what Benamour calls “the first institutional grade risk rating system for DeFi.” He added that his company’s ratings system has been widely adopted with Exponential grades available on DefiLlama via APIs.
Benamour said he and his team built the rating system because he “wasn’t comfortable having people invest through us without them understanding the risk they’re taking.”
‘One vault’
Exponential Chief Investment Officer Mehdi Lebbar explained why the company sees YO as a standout in the DeFi space.
“There’s no protocol that is combining two things. The first thing is the risk-adjusted yield, in the sense that we actually look at risk; you can have protocols that maximize the yield, but don’t optimize it,” he said. “The second thing is we haven’t seen any protocol be able to go multi-chain, in the sense of, you deposit only in one vault and that vault goes into multiple chains.”
Although YO was previously only available privately, Benamour said it’s resonating with a broad user base.
“People who don’t fully understand it like it because it’s automated and it just chases the yield for them across multiple chains,” he said. “And people who are pros also like it because it makes their life a lot easier.”
According to its website, YO has received $7.7 million in deposits. In addition to Paradigm, Exponential’s other backers include Haun Ventures, Solana Ventures, and Polygon.
© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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