To Connect Eastern and Western DeFi markets a New DeFi alliance is Launched
September 4, 2020 4:59 pm
A permissionless blockchain startup in China, Conflux Network has launched a new DeFi-focused association focused on international cooperation of major industry players, between the ongoing craze around decentralized finance or DeFi.
The new alliance aims to connect Eastern and Western DeFi markets, uniting China-based blockchain leaders and global DeFi startups to streamline cross-border market growth, sustainability and innovation termed as “Open DeFi”.
Per an announcement 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 comprises several industry players like major Chinese DeFi protocol dForce. Other participants include blockchain-focused venture capital firm Sequoia Capital, Blockpower Capital, Antelope Holdings, DeBank and MCDEX.
Members of Alliance are going to divide their efforts into three major vectors like risk management, new liquidity strategies, and incubation and innovation.
Members of the risk management track aim to guarantee smart contract and economic security for DeFi services, while institutional investors and crypto exchanges target new pooling and trading strategies to boost liquidity. The association also plans to collaborate on new DeFi offerings and tap new strategic partners as part of its incubation wing.
The industry sector mirrors the First Coin Offering-powered crypto boom in 2017 and the DeFi is considered as the new ICO fizz. The DeFi industry has been recovering in 2020, surging from under $1 billion in January to as high as $9 billion in late August. The concept of DeFi connects the use of crypto-tools like digital assets, smart contracts and blockchain-based decentralized apps in financial services such as credit and lending.
DeFi Associations and Alliances In 2020
In March 2020, markets collapsed after DeFi, the DeFi project Ren launched a consortium backed by veteran crypto investor Polychain Capital to support emerging fintech. The Ren Alliance has added fourteen new members, expanding the network up to 51 firms. The new entrants include major decentralized exchange, IDEX, Switcheo, Dex.Blue, 1inch, Jarvis Network, Charged Particles, DEXTF, Zerion, and others.
In April 2020, TD Ameritrade and major DeFi firm Compound participated in the launch of the Chicago DeFi Alliance, which aims to provide DeFi-focused startups and entrepreneurs with support and guidance in complying with trading regulations and other applicable requirements.
In mid-August, major global crypto exchange Huobi also launched a global DeFi alliance, which is set to establish universal protocol standards for the DeFi space and improve communications within the DeFi ecosystem. The alliance will also research emerging DeFi protocols to help avoid future crises in the community. The alliance’s inaugural members are MakerDAO (MKR), Compound (COM), Nest (NEST), and dYdX (dYdX).