In the face of the ongoing frenzy around decentralized finance, a Chinese blockchain start-up launches a global DeFi initiative.
The new DeFi alliance – Open DeFi
The blockchain start-up Conflux Network has launched a new association focusing on international cooperation between major players in the industry.
Dubbed “Open DeFi”, the new alliance aims to connect DeFi’s eastern and western markets, uniting Chinese blockchain leaders and DeFi global start-ups to facilitate cross-border market development, sustainable growth and innovation.
As announced on September 3, the new alliance is supported by the Chinese government through the Shanghai Science and Technology Committee. Initiated by Conflux Network, Open DeFi includes a range of industry players such as China’s main DeFi protocol, DForce. The other members include Sequoia Capital, Blockpower Capital, Antelope Holdings, DeBank and MCDEX.
Allies intend to divide their efforts into three main sectors: risk management, new liquidity strategies, and incubation and innovation.
Members of the risk management group strive to provide smart contracts and economic security for DeFi services, while institutional investors and exchanges target new pooling and trading strategies to increase liquidity. The association also plans to cooperate on new DeFi offers and acquire new strategic partners as part of its incubation department.
DeFi is the ICO of 2020
DeFi is often referred to as the new ICO bubble because the sector resembles the initial ICO boom in 2017. In 2020, the value of the DeFi industry increased from less than $ 1 billion in January to as much as $ 9 billion at the end of August. The DeFi concept combines the use of tools such as digital assets, smart contracts, and blockchain-based decentralized applications in financial services such as loans and credits.
In 2020, DeFi led to the creation of many associations and alliances. In March, as part of the DeFi Ren project, a consortium was launched, supported by an experienced crypto investor – Polychain Capital. In April 2020, TD Ameritrade and Compound took part in the creation of the Chicago DeFi Alliance, which aims to provide support and advice to DeFi companies. In mid-August, Huobi also launched the DeFi global alliance, which includes companies such as MakerDAO, Compound, Nest and dYdX.