Decentralized finance (DeFi) is one of the hottest topics in the crypto industry of the year and growth in the sector does not seem to be losing its explosive momentum. DeFi has not only introduced massive rewards to its community and breathed new life into the concept of decentralized community governance, but also a new and viable business model with the guaranteed distribution of transaction fees to those involved in liquidity pools. Liquidity is key in the DeFi market and the potential yields have obviously resonated with plenty of traders and yield farmers. In light of this, it seems prudent for Asia to involve itself more significantly in the market, which is dominated mostly by countries in the West.
According to Decrypt, China-based blockchain firm Conflux recently established Open DeFi, a consortium of industry experts and advocates dedicated to accelerating the growth of DeFi developments in Asia.
Currently, confirmed members include Sequoia Capital, Blockpower Capital and the infamous dForce, which made the news in April after hackers managed to steal $25 million from the lending protocol’s platform, exploiting a security flaw in the integration of a ERC777 token on its network. A related spokesperson said that Binance might come onboard, and the project already has the support of the Shanghai Science and Technology Committee.
Similar initiatives are being rolled out in other parts of the world – trading platform Huobi announced the launch of the Global DeFi Alliance together with MakerDAO and Compound according to a report by Yahoo Finance. The consortium expects to involve a wide range of DeFi service providers and platforms to increase accessibility of the technology over communities in Asia and beyond.
For now, however, Open DeFi’s function mirrors that of an accelerator for DeFi start-ups with the inclusion of venture capitalists in the program.
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