Decentralized finance (DeFi) has spurred an ongoing craze within the crypto industry at large. As a result of this, a China-based blockchain startup is aiming to launch a new, global DeFi initiative.
Open DeFi Is Born
Conflux Network stands as a permissionless blockchain startup and has recently launched a new association focused on international cooperation of significant players within the DeFi industry at large.
This alliance, dubbed “Open DeFi,” aims to connect the Western and Eastern DeFi markets with each other. This could potentially lead to the global DeFi startups and the Blockchain leaders of China to streamline innovation, sustainability, as well as cross-border market growth.
The Members In Question
As per an announcement made on the 3rd of September, 2020, this new alliance is also supported by China’s government. This is done by way of the Shanghai Science and Technology Committee. Open DeFi, initiated by Conflux Network, comprises of an array of industry players, such as dForce, the major China-based DeFi protocol. Other heavyweights within the alliance include Blockpower Capital, Sequoia Capital, DeBank, Antelope Holdings, as well as MCDEX.
As it stands now, the members of this alliance will divide their efforts into three major vectors: New Liquidity Strategies, Risk Management, as well as Incubation and Innovation.
The Risk Management-focused members will aim to ensure that economic and smart contract security when it comes to DeFi Services. Crypto exchanges and institutional investors will prioritize new trading and pooling strategies in order to boost the overall liquidity. Alongside this, the association plans to tape new strategic partners and collaborate on new DeFi offerings as part of its incubation and innovation efforts.
The DeFi space and its current surge in popularity and growth have been frequently described as the new ICO bubble. This is due to how the industry is currently mirroring the crypto boom of 2017, which was powered by rampant Initial Coin Offerings (ICO). The Defi industry has been in a state of constant rally, surging up to $9 billion in late August of 2020 from only $1 billion recorded in January of 2020. DeFi, as a concept, combines various tools associated with crypto, such as smart contracts, digital assets, as well as blockchain-based decentralized applications within financial services, like lending and credit.
Time will only tell how successful this alliance will be, but the thing will most likely garner the success, seeing as it has the backing of the Chinese government.