China recently became a global merchant power, and technology was the main engine behind its shooting-star-speed growth. Despite issues regarding privacy and strong censorship policies, DeFi technology managed to appear in China as well, and dForce represents their most innovative endeavor so far.
How Does dForce Work?
The dForce platform can be explained as an integrated solution for decentralized finance protocols. The team behind this innovative idea visualizes different protocols as Lego blocks, so they aim to fix a solution by layering one on top of another to create a multi-protocol solution for any DeFi use case.
Further reading: REN Protocol: Decentralized Solution for Inter-Blockchain Liquidity
The project has already developed six main products, which are still in the pre-launch stage. These tools cover a wide range of solutions regarding:
- Assets – Yield Protocol and Goldx
- Trade – dForce Trade Lite and dForce Trade advanced
- Lending markets – Hybrid Protocol and Open Lending Protocol)
To make it feasible in reality, dForce reunited support from several partners, including different exchanges, wallets, and other platforms to provide eco-support as well.
Project’s founder Mindao Yang believes that most DeFi protocols existing currently are built to fit Western customers, which can leverage the power of dForce while standing its native ground. The idea is to provide the Chinese blockchain market with a full-stack service, where users can have several protocols for a wide range of purposes at their disposal.
So far, the dForce Foundation maintains two protocols, lending platform Lendf and synthetic fiat stablecoin USDx.
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How Does dForce Hold This Complex Ecosystem Together?
Despite the beauty in the idea of holding several “DeFi Legos” together, in reality, it can turn out to be chaos instead.
To hold it steady it reunited several strong partnerships to back the project, making it feasible to bring out-the-box ideas to reality.
The dForce ecosystem is interdependent, stacked with industry-leading exchanges (Hotbit, Uniswap, DDex, and others), wallets (TrustWallet, BitPie, imToken and MyKey, just to name a few) and other partners brought to back its ecosystem such as Huobi, Multicoin Capital, Hashkey, SparkPool, Litex, and others.
The dForce’s native token, called DF, is the utility token for governance purposes within the system. It also works as a tool to bound the system together, as DF holders can use it to operate cross-chain seamlessly for several purposes- lend, borrow, earn, stake, etc.
Strong (And Unusual) Centralized Partnerships
Among its partners, dForce is backed by the CMBI (China Merchant Bank International). The bank is considered as an investment arm of the 5th biggest bank in China (especially when it comes to the tech industry), so the partnership couldn’t be seen as weirder (utter centralization vs full decentralization).
Despite this conceptual mismatch, the dForce Foundation has fostered financial relationships for a long time.
Founder Mindao Yang stated that CMBI is one of the few Chinese banking groups that openly invested in DeFi to this day, which is nothing new considering the country’s iron-hand policy when it comes to financial and personal privacy.
Only Time Will Tell
Recently, in mid-April this year, the dForce Foundation managed to raise $1.5 million in a funding round led by Multicoin and Huobi Capital. The resources will be destined for further development of their product lineup, thus expanding their portfolio to achieve their full vision.
Despite lacking some attention for Western specialized media, dForce quickly climbed the DeFi ranks as one of the industry-leading endeavors. According to data from DeFi Pulse, dForce is already listed as the 7th largest DeFi market worldwide, considering TVL only (Total Value Locked).
Their native lending protocol Lendf is currently the largest in China based in fiat-backed cryptocurrencies (USDC, USDT, etc.) and also has more of these stablecoins out for borrow than the sum of Compound and Aave Protocol.
The numbers don’t lie, as dForce’s Lendft has an $8.5 million share of the market in loans, while Compound has $5 million and Aave Protocol has $7 million. As it seems, dForce has the potential to be the first super DeFi network in the crypto industry, and only time can tell otherwise.
The dForce Foundation is a Chinese DeFi endeavor aiming to reimagine and reinvent the way people look at decentralized finance. They are building the first DeFi super network, designed to deliver integration and interoperability for various protocols at the same time, covering several use-cases (stablecoin, liquidity, lending, derivatives, etc.).
Currently, most of their products are still pre-launch ideas, mainly focused on Chinese DeFi markets. Considering the size of the Chinese market, it is hard stating they want to spread their influence over the West.
However, if we consider their potential and what they envision (plus the current stage of globalization driving the Chinese economy) it is possible to state that maybe plans for seizing their share on the West exist, indeed.