dForce, a Chinese decentralized finance (DeFi) platform, has completed its seed funding round, securing $1.5 million in total.
Announced on Tuesday, the round was led by Multicoin Capital, along with participation from Huobi Capital and CMB International (CMBI).
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Launched last September, the blockchain company is building “the first ‘super-network’ of DeFi protocols.”
It maintains two protocols – lending platform Lendf and synthetic fiat stablecoin USDx – both of which are integral parts of its DeFi ecosystem.
“Using the token, users of the dForce ecosystem can seamlessly traverse several financial protocols that allow them to lend, borrow, or earn all without switching platforms or tokens,” the announcement by Multicoin Capital explained.
“Super-network” for DeFi
Claimed to be the largest DeFi market place in China, the company is still enhancing its offerings for users.
According to DeFi Plus, dForce is currently the seventh-largest DeFi market with its almost $24 million in locked value.
But the company has a long way to go as Maker, the leading DeFi project, has over $348 million in locked value.
The fresh proceeds will be utilized to increase the workforce at the company and also in the development of the startup’s upcoming products this year.
Notably, the popularity and demand for DeFi surged drastically over recent years, and the sector is seen as the disrupter to the traditional financial industry. However, DeFi platforms still have many flaws.
Maker recently avoided shut down its protocol triggered by a sudden plunge in Ether’s value. Another DeFi platform bZx was recently attacked twice, exposing the vulnerabilities in the decentralized ecosystems.
“With a wide-ranging ecosystem of DeFi protocols all designed to work seamlessly together—unified by the DF token—wallets, exchanges, and other partners can leverage one or more of these protocols to build and configure custom experiences that maximize value for each of their respective user bases,” the venture firm added.