DeFi Ecosystem Landscape
→ Decentralized Exchanges (DEXs): The lifeblood of DeFi liquidity, facilitating direct peer-to-peer transactions. → DeFi Portals: Aggregators that offer a suite of services from lending to staking and trading. → Launchpads & Communities: Platforms providing insights and access to emerging DeFi projects. → Token Analytics: Websites like CoinMarketCap and CoinGecko, offer essential token data. → Ecosystem Aggregators: Platforms such as DeFiLama, providing deep dives into protocol metrics.
The DeFi Knowledge Gap
The current DeFi ecosystem, while offering a range of tools and services, fails to address a critical gap in the market. Existing platforms focus on individual components, such as protocols, tokens, or metrics, but none provide insights on effectively combining the products of these protocols to optimize Web3 strategies.
Users are left searching for guidance on leveraging various DeFi products and creating synergies across protocols to maximize returns and minimize risks. In the absence of a trusted, unified platform, users often resort to dubious telegram groups, social media accounts, and paid services that may not have their best interests in mind.
MC² Finance bridges this knowledge gap by providing a unified platform for analyzing, discussing, and investing in comprehensive Web3 strategies that span multiple protocols and chains. Our platform offers users a trusted source of insights, backed by verified on-chain data and expert analysis, ensuring transparency and accountability.
By addressing this unmet need, MC² Finance unlocks the full potential of the DeFi ecosystem, empowering users with the tools and insights needed to navigate the complex digital asset landscape and make informed investment decisions. Our platform connects the dots between protocols, products, and strategies, democratizing access to advanced DeFi investing for all.
Unveiling Market Potential
The absence of a platform facilitating the creation of compliant decentralized funds represents a significant market opportunity. Current solutions are either capital intensive or hampered by regulatory hurdles.
Target Audience
MC² Finance’s three-sided marketplace consists of the following stakeholders:
Experts (Crypto-Natives Traders, KOLs, Hedge Funds) Users (DEX Users & Novice and Experienced Investors) Partners (DEXs, Wallets, DAOs, Launchpads, Custodians, Banks)
MC² Finance Stakeholder Benefits
MC² Finance leverages years of crypto space experience to onboard the next 100 million users, providing essential services for ecosystem participants:
Experts (crypto-natives traders, KOLs, hedge funds)
DeFi experts (crypto-natives traders): ✕ Complex to earn from strategies, high fund set up costs. ✓ Connect your wallet, earn from positive strategies, no set up costs. ✓ Manage one wallet on a single chain - grow a community cross chain. KOLs: ✕ Required to tweet daily new trades to grow follow base. ✓ Share on-chain verified trades of your successes on Twitter. ✓ Build 0-trust relations with followers. Asset management traders (ie. hedge funds, and institutional investment groups): ✕ Limited by regional investor restrictions and high barriers to entry. ✓ Expand reach to a global investor base with streamlined, compliant fund creation.
Partners (DEXs, wallets, DAOs, launchpads, custodians, banks)
DEXs: ✕ Decentralised = no opinions on tokens = complex for newcomers. ✓ Offer users decentralised marketplace of opinions. ✓ Attract best traders, higher TVL, more assets and visibility. Institutional partners (custodians, banks): ✕ Barriers to DeFi, often limited to Bitcoin and Ethereum. ✓ Pre-trade compliance and look-through strategies. ✓ Offer users access to DeFi while increasing AUM. Crypto-natives communities (DAOs and launchpads) ✕ Low stickiness of users and limited product scope. ✓ Revenue share products and real-time market insights, creating better stickiness.
Users (Anyone who visits our partners' websites)
Retail crypto communities - DEXs clients and customers ✕ Trading is fractionalized & trusted information is hard to verify. ✓ Access on-chain verified information about full token strategies. ✓ Invest any amount, while maintaining 100% custody of assets. Institutional & asset management users - through custodians & banks ✕ Complex to connect with DeFi, no risk management possibilities. ✓ Simplify DeFi strategies and risk-weighted strategies ✓ Pre-trade compliance management
Addressable Market and Growth Potential
The MC² Finance marketplace analysis provided the following insights:
1. $10 trillion in total volume traded across markets in 2022, as shown from Binance data (Binance, 2022). 2. 10% of the worlds GDP could be stored on Blockchains by as early as 2025 (World Economic Forum, 2019). 3. The size of the DeFi market, as of 2022 is around $14 billion dollars. This figure is expected to surpass $200 billion by 2030, growing at a CAGR of 46% (Decentralized Finance Market Size, 2023). 4. PWC reports 47% of traditional hedge fund managers, representing $180B of AUM, are looking at investing in crypto (Consensys, 2021). 5. The dApp industry experienced a 50% increase in unique active wallets (dUAW) in 2022, rising from an average of 1.58 million daily dUAW in 2021 to 2.37 million in 2022 (Dapp Radar, 2022). 6. With integrations into DEXs and MC²Finance positioning to service DEX markets, we have a high 100x multiple of 105bn ATH (CoinMarketCap, 2024). 7. Generation Z, the largest and most tech-savvy generation, has already declared crypto as their primary investment asset class (FINRA-CFA, 2023).
MC² Finance Key Differentiators
Type | Drawback | MC² Finance |
DeFi Vaults | ✕ Typically limited to a single chain
✕ Non-compliant to institutional regulations
✕ Pooling of assets | ✓ Cross-chain Cross-protocol
✓ Regulatory Aligned
✓ True decentralization with the MC² Finance Protocol |
Wallet Analytics | ✕ No historical Analytics
✕ No focused on trading or strategy
✕ Limited trading functionality | ✓ Advanced Trading and Risk analytics
✓ Strategy focus
✓ Intent based trading tools
✓ Social integrations |
On-Chain Traditional Funds | ✕ High regulatory complexity
✕ Costly and time intensive to set up
✕ Limited by who can invest | ✓ Instant setup
✓ Simplified regulatory alignment
✓ Flexible user structures |
Unique Value Proposition
MC² Finance distinguishes itself by offering a unified platform that addresses the limitations of existing solutions. Our unique value propositions include:
Institutional Grade and Regulatory Alignment: Our digital asset portfolios comply with regulatory requirements, suitable for institutional and regulated funds due to client custody.
Product-Focused Analytics: We provide deep insights into protocols and feature analysis from top-rated strategy experts, empowering users with actionable information.
Simplified Trading Strategies Across All Chains and Protocols: MC² Studio, our intent-based creator, lets users build one-click strategies for all supported chains and protocols.
On-Chain Verified Strategies: All trades and strategies on our platform are verified on-chain, allowing experts to share proven trades with their audience, fostering trust and transparency.
By offering these unique value propositions, MC² Finance bridges the knowledge gap in DeFi investing and democratizes access to advanced Web3 investment strategies. Our platform empowers users with trusted insights and tools, enabling them to navigate the complex DeFi landscape with confidence.
The Future of Asset Management
The opportunity of immutable, trustless, interoperable smart contracts creates faster and economically beneficial methods to access and manage investments.
→ Peer-to-peer transactions, → Digital identity & token gating, → Secure data sharing, → Decentralized autonomous organizations (DAOs), community-based decision-making and governance, and → Asset-backed tokenization
Example use-cases for the advanced capital market products :
→ Farmers can tokenize their yield outputs on futures markets, selling their crops or livestock before they are ready for harvest. → Sports fans can develop sports team investment strategies for global events such as the World Cup, selling and investing in these spots strategies. → Investors, with one click can move assets from DeFi to traditional markets depending on inflation and growth. → Homeowners can liquify their home on-chain - ie 20% of your home you could lock into a smart contract to access and further leverage some of its value.