New DeFi alliance to connect Eastern and Western DeFi markets

Published at: Sept. 4, 2020

Amid the ongoing craze around decentralized finance, or DeFi, a blockchain startup in China is launching a global DeFi initiative.

Conflux Network, a permissionless blockchain startup, has launched a new DeFi-focused association focused on international cooperation of major industry players.

Called “Open 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. 

According to a Sept. 3 announcement, the new alliance is supported by the Chinese government through the Shanghai Science and Technology Committee. Initiated by Conflux Network, Open DeFi comprises a number of 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.

Alliance members are going to divide their efforts into three major vectors like risk management, new liquidity strategies, and incubation and innovation. 

Members in the risk management track aim to ensure 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.

DeFi is often referred as the new ICO bubble as the industry sector mirrors the Initial Coin Offering-powered crypto boom in 2017. The DeFi industry has been rallying in 2020, surging from under $1 billion in January to as high as $9 billion in late August. The concept of DeFi combines the use of crypto-associated tools like digital assets, smart contracts and blockchain-based decentralized applications in financial services such as credit and lending.

DeFi has given rise to multiple associations and alliances in 2020. In March, the DeFi project Ren launched a consortium backed by veteran crypto investor Polychain Capital. In April 2020, TD Ameritrade and major DeFi firm Compound participated in the launch of the Chicago DeFi Alliance, which aims to provide support and guidance to DeFi firms. In mid-August, major global crypto exchange Huobi also launched a global DeFi alliance comprising members like MakerDAO, Compound, Nest and dYdX.

Tags
Decentralization
Technology
China
Government
Defi
Smart Contracts
Finance
Related Posts
Thailand’s Central Bank Eyes DeFi Use Cases for Its Digital Baht
Thailand’s central bank is looking at smart contracts and decentralized finance (DeFi) implementations for its national digital currency, the digital baht. Vijak Sethaput, senior developer for the Bank of Thailand’s (BoT) central bank digital currency project Inthanon, discussed the country’s CBDC progress in an interview hosted by a global think tank for central banking, the Official Monetary and Financial Institutions Forum, on Aug. 13. Sethaput was joined by Sky Guo, CEO of New York-based enterprise blockchain firm Cypherium, which is focused on global CBDC implementations and interoperability. In the interview, Guo said that global jurisdictions can borrow from the DeFi …
Decentralization / Aug. 14, 2020
‘DeFi will replace institutions entirely,’ says BitGo CEO Mike Belshe
The global decentralized finance (DeFi) market size was valued at $11.78 billion in 2021. This number is expected to increase as DeFi advances, yet it is still in its infancy. Therefore, a number of banks and traditional financial institutions still tend to be unaware of DeFi’s potential. While this may be, industry experts within the crypto sector are predicting that decentralized finance will overtake traditional financial institutions in the coming years. For instance, Mike Belshe, CEO and co-founder of BitGo — a digital asset custody provider — told Cointelegraph that he believes DeFi will replace institutions in the next three …
Decentralization / Nov. 2, 2022
GameStop tale exposes regulatory paternalism and DeFi’s true value
Though seemingly coming from nowhere for many, the themes behind the Reddit-fueled r/Wallstreetbets pump of GameStop feel familiar. Watching it unfold, I tried to figure out just why it had captured my interest to such a degree, and, to me, it was a spillover into the traditional markets of some pervasive themes driving crypto. Despite some competition in the narrative, I view the motivating force — and by it, I mean the social media-fueled spread of the message that drew enough widespread interest to have an impact in the market — behind the GME pump as analogous with what, at …
Decentralization / March 5, 2021
Neo users explain why they've held on to the project despite China's heavy crypto crackdown
It's been a wild ride for Neo (dubbed "Ethereum of China") investors in the past few years, especially as China began to incrementally introduce harsher crypto regulations. But despite the odds, the community appears to be resilient, with a dedicated society of developers worldwide and a bourgeoning decentralized finance, or DeFi, hub that came into prominence via the launch of Neo N3 mainnet last year. As told by Neo investors Lucas and Jiří, who spoke to Cointelegraph, they were not expecting such a "huge drop in price" for Neo. Still, they nevertheless decided to hold their Neo tokens through all …
Decentralization / Feb. 28, 2022
Chicago DeFi Alliance Launches to Save Decentralized Finance
Amid the apparent ongoing collapse in decentralized finance (DeFi) lending, a group of major trading and cryptocurrency companies in the United States are launching an alliance to support the sector. Introduced on April 7, the Chicago DeFi Alliance (CDA) aims to provide DeFi-focused startups and entrepreneurs with support and guidance in complying with trading regulations and other applicable requirements. Chicago DeFi Alliance to share its expertise to boost DeFi liquidity and markets According to a blog post by crypto fund Volt Capital, a founding member the CDA initiative, the alliance also includes major brokerage firm TD Ameritrade, crypto investment firms …
Decentralization / April 8, 2020