It has been reported that the new alliance named “Open DeFi” aims to connect Eastern and Western DeFi markets by uniting China-based blockchain leaders and global DeFi startups to streamline cross-border market growth, sustainability, and innovation.
However, 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.
Major VC firm @sequoia and @Conflux_Network establish a new DeFi association to connect China-based blockchain leaders and global DeFi startups https://t.co/P2dLjoHtbH — Cointelegraph (@Cointelegraph) September 4, 2020
According to the report, alliance members are going to divide their efforts into three major vectors like risk management, new liquidity strategies, and incubation and innovation.
It has been analyzed that 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.
Thus, the association also plans to collaborate on new DeFi offerings and tap new strategic partners as part of its incubation wing.