Huobi Chips in DeFi Wave, Forms Global Alliance with MakerDAO and Compound

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by Bhushan Akolkar · 3 min read
Huobi Chips in DeFi Wave, Forms Global Alliance with MakerDAO and Compound
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The major aim of the DeFi alliance formed by Huobi is to establish universal DeFi protocols targeted towards a common and larger goal of the global financial community.

The Decentralized Finance (DeFi) market has surged significantly over the last month with the total market cap going above $15 billion. Chipping-in on this wave, Seychelles-based crypto exchange Huobi announced a new initiative dubbed Global DeFi Alliance.

The alliance aims at establishing universal protocol stands within the DeFi ecosystem and improve communication among the DeFi apps. Currently, the DeFi market being relatively new, it remains quite scattered with the existing players. Thus, establishing an alliance will help in conducting research in emerging DeFi protocols. The Global DeFi Alliance comprises of several DeFi platforms and service provides. The inaugural members of this alliance include Compound (COM), MakerDAO (MKR), Nest( NEST) and dYdX.

This initiative is like to give a major boost to research and development in the DeFi space. Besides, it will also help to establish cross-border communication between, Asia, Europe, and the U.S. Just a day back, Binance CEO Changpeng Zhao also praised the ongoing innovations in the DeFi space. He also added that Binance is currently working on a number of DeFi projects.

Compound founder Robert Leshner said that the formation of global DeFi standards to establish “fair, efficient, transparent, safe and globally accessible financial markets”. Besides, he added that the alliance will also push the mainstream adoption of DeFi apps. In the coming days, the founding members will add more players to the consortium. This will include security companies, protocols, wallets, and investment firms.

Huobi: DeFi Systems Free from Credit Risks

Huobi’s chief investment officer, Sharlyn Wu, called the DeFi market as the “first attempt in human history” to build a modern financial system void of credit risks. Speaking to CoinTelegraph, Huobi’s chief investment officer Sharlyn Wu said:

“We have to partner with the entire ecosystem. But we want to work with the best of projects out there and make sure our users have access to them. We deeply feel there is an isolation between the centralised exchanges, financial institutions from the global community, and that we want to close that gap. And also, the huge cultural difference between the East and the West, and we feel that’s part of our responsibility as well to bring the East and the West, the community together.”

Wu, who has previously worked with China Merchant Bank International (CMBI) is a big believer in decentralized finance. Over the next decade or two, Wu thinks that even traditional banking institutions will move to DeFi due to lower credit risks. Speaking more on the future of a borderless financial system, Wu added:

“With Crypto and DeFi, we’re building a new economy and society that’s on the cloud. This society, this economy, we can’t really think about things in terms of countries. And I know the physical world is broken. Things get more and more isolated. But from my work in crypto space, I can feel that the crypto world is more integrated than ever. And I think that it will become stronger and stronger.”

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