Stakefair, a Decentralised Finance (DeFi) company that has been in beta for the past six months and founded by Akinyemi Akindele, has launched.
Stakefair allows users predict the outcome of sports matches and other real-world events to earn money by staking digital currency.
Like traditional gaming companies, the outcome of the wager can either be a win or a loss. However, Stakefair’s game-changer is its “no-loss” sports staking offering that encourages stakers to see the platform as a yield generator through their crypto stake.
The staked wager is aggregated and lent in DeFi lending pools to earn interest which is used to pay winners, while everyone gets back their original staked amounts after a lockup period.
Related stories: There is a glaring need for regulation in Africa’s online betting industry
According to the founder, who is also the CEO, the gaming platform has been undergoing beta testing as BetDemand for about six months and has witnessed impressive consumer acceptance.
To date, the platform has attracted over 6,000 users from Africa, Europe and North America, and recorded over $800,000 in stakes.
Stakefair is now ready for a full-scale roll-out and has raised $670,000 pre-seed funding, with participation from Adaverse, Nestcoin, Kepple Africa Ventures, Canza Finance, Voltron Capital, Echo VC Chain, Timi Ajiboye, Tomiwa Olaosebikan, Peter Kisadha, Saturn Blockchain Ventures, Thrive Africa Syndicate, Nehikhare Igbinijesu, Oluchi Enebeli, and Clement Hugbo.
Akindele says his company has “built much more than the business-to-consumer (B2C) DeFi gaming products,”
“We have also built the DeFi infrastructure that allows other developers to build DeFi apps like ours for use cases such as no-loss staking, treasury management, yield aggregation, wallets and market-making,” he adds.
Due to the popularity of Stakefair during the beta period, we have decided to vertically integrate and build our own DeFi lending and borrowing pool. That way, the lending and borrowing that generates the yield that backs our no-loss pools can happen on our own platform.Founder and CEO of Stakefair, Akinyemi Akindele
The Stakefair model
The “no-loss” sports staking model is simple. When a user stakes a unit of a coin on a set of games, Stakefair will invest it in DeFi lending pools so that it can yield interest. If the user’s stake wins, they get their capital and some return on investment (ROI). If not, they get only their original staked amount back. There is however a minimum timeframe for which the stake must be locked up to yield a return.
Stakefair will serve the B2C segment as a gaming company that functionally operates as a yield generation protocol while also providing financial infrastructure and allied services to businesses and financial institutions.
Read also: Binance raises $500m fund for cryptocurrency and blockchain technologies
For individuals, the benefits of DeFi include potentially greater security, potentially lower costs, greater types of services and the ability to earn higher income through their crypto holdings. These benefits and others are enabled through decentralised apps like Stakefair.
Nigeria is an important market for Stakefair, as the DeFi start-up was able to release the product in beta phase while focusing on the market. And, as a global company and since DeFi is borderless, the company has customers from all around the world already.
Stakefair also has huge growth ambitions as it plans to scale to 100,000 users in Nigeria in the short term. The company also says that its long-term ambition is to become the platform that onboards the first 1 billion users into DeFi.
To achieve this, Stakefair is demystifying DeFi and building fun exciting products that wrap the DeFi layer into existing product verticals used daily allowing us to achieve things that were not possible before in these verticals.
The primary target audience are individuals who are enlightened, investment-minded and are conscious of their spending. They are also people looking at maximising the benefits obtainable from the introduction of tech to their routine activities and interests.
Notwithstanding, these individuals have prior knowledge of the real-money gaming industry and probably have multiple betting accounts. More importantly, they are individuals with a sound knowledge of the crypto space and are seeking low or no-risk investments.
Stakefair would also accommodate a wider coverage of individuals looking to maximise its platform to earn and invest, in as much as they are of the legal age.
Get the best of Africa’s daily tech to your inbox – first thing every morning.
Join the community now!