Problem

Earning interest is complicated

TradFi: High entry barriers for retail clients.

For retail investors, gaining access to large investment funds is extremely difficult. The minimum threshold for participating in a hedge fund starts at $200K, and for tier 1-2 funds, this threshold ranges from $1M to $5M. Funds are locked for long periods, and information about strategies and risks is kept from clients.

We create products for the community—people like us. Our solutions are focused on addressing the personal needs of the founders and team, who have over 10 years of investment experience, including 7 years in cryptocurrency. These products are aimed at those who do not have the ability to invest large sums into funds or projects but want access to financial tools that are available to everyone, not just the "big players."

CeFi: Lack of transparency and unstable models.

In 2022, the largest CeFi platforms offering cryptocurrency yield collapsed. Users invested their funds without understanding the sources of returns or the risks they were taking. Platforms like Celsius, BlockFi, and Voyager—projects with billions in liquidity and millions of users—collapsed, exposing the sector's key weaknesses.

The main lessons from these failures: that transparency and understanding of how and where users' assets are being used are essential. Many CeFi models proved unsustainable, creating demand for more open and secure solutions.

DeFi: Complexity and barriers for users.

DeFi offers immense growth potential, but most platforms remain too complex for retail investors. Understanding the market, managing risks, and interacting with protocols all require time and technical knowledge that most users don’t have.

Many investors face fraud or lack access to professional tools. Even experienced players spend considerable time monitoring the rapidly changing DeFi markets. Additionally, 95% of retail investors lose their funds, often without fully understanding the risks associated with DeFi, such as smart contract bugs, risks related to self-custody, and the lack of security mechanisms.

DeFi offers users high yields but carries more risks than custodial solutions. Many retail users, following the trend, transition to DeFi, exchanging familiar custodial risks for less understood and potentially higher risks related to smart contracts and asset management.

Points for Strategy Providers

Strategy providers also face numerous challenges. These include finding platforms to host their strategies, marketing and promotion, the complexity of bookkeeping and compliance, managing fee structures, fund cleanliness, and client KYC. The EarnPark platform aims to solve these problems by providing a one-stop solution for managers, including "Strategy-as-a-Service," allowing them to host strategies with access to necessary management and automation tools.

First-Wave Earn Interest Failures

The first-wave earn-interest projects that collapsed in 2022 highlighted two key points:

1. The demand for such products remains high, and with the increasing adoption of cryptocurrencies, this demand will only continue to grow (current levels are 4%-10%).

2. Centralization proved to be a weak point. Projects like Celsius and BlockFi managed user assets for their benefit, hiding long-term risks and offering a false sense of security.

We plan to change this by offering users participation in the distribution of both risks and returns. Each user will know where and how their assets are being used and will be able to fully benefit from the risks they choose to take.