A new DeFi startup in China is launching a global initiative to benefit from the fast-growing sector. Conflux’s new platform had been in the pipeline for a while and now their eyes are set on an international collaboration and connecting the Eastern markets with the Western ones in an efficient manner.
Conflux is relying on a new blockchain alliance called Open DeFi to for this purpose and is now courting all the right players in both Eastern and Western parts of the world to take this forward. The main focus of the new alliance is on international trade, innovation and sustainability. The project interestingly has full backing of the Chinese government through its Shanghai Science and Technology Committee. The move seems like a part of the Chinese establishment to promote decentralized technologies in their country and attract foreign investment into the sector in China itself.
What is Open DeFi?
Open DeFi currently consists of predominantly Chinese companies and startups including protocol dForce, investment companies like Sequoia Capital, BlockPower Capital, Antelope Holdings, DeBank and others. Conflux is hoping to widen the current buildup of the Open DeFi association and is looking to add members from around the world. The members will collaborate with each other for DeFi security, pooling of resources for common interests and trading strategies to boost liquidity and such in the area. The association may also regulate new entrants and stop saturation of the sector.
The DeFi sector has grown considerably in recent months and the rest of the sector is piggybacking along with it to the top of the charts. However, there are concerns that the DeFi sector may become the kind of crypto bubble like that of the ICOs of the 2017 and 2018, much of which are no longer in existence anymore and hardly if any progress has been made on them. The sector is growing along the same lines as the previous bubble and investors need to be careful where to invest to avoid losses like the ones suffered last time.
However, with free associations like the one in Open DeFi will help determine actual use cases and get projects to work with each other in a competitive environment. Like Shanghai, other cities around the world have also launched DeFi initiatives including Chicago DeFi alliance, Huobi alliance and many others.
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