The latest dForce funding round led by Huobi Capital and Multicoin Capital has netted the DeFi firm $1.5 million. China-based decentralized finance platform, dForce, has raised new capital from a seed funding round for their upcoming project launches in 2020. Chinese banking giant, CMB International, also participated in the dForce funding round.
As per the official statement, the foundation has already allocated the new funds towards vital products launching later this year. dForce Foundation is known for two primary protocols, including stablecoin USDx, and lending brand Lendf.
dForce funding round to help cultivate upcoming DeFi products
Launched in 2019, dForce has quickly risen to prominence in China. Mindao Yang, the founder of dForce, says that the new funds will empower the firm to enter deeper into the DeFi realm. It plans to move beyond its current stablecoin genre. Lendf is crucial to becoming a dominant DeFi player.
Reportedly, dForce has risen to become the biggest fiat-backed stablecoin lending platform in China. It boasts an impressive $8.5 Million in loans – a figure much higher than both Aave and Compound. However, it does not feature prominently in the DeFi arena. As per DeFi Pulse, it is the seventh-largest player in the DeFi arena in terms of locked value.
dForce is going big in China
Yang explains that most DeFi protocols are geared towards serving Western markets. The market primarily caters to western interests. dForce wants to focus on China and explore local opportunities. The latest dForce funding round will help the firm gain foothold in the local DeFi market within China.
The Chinese DeFi market is starkly different than its western counterparts. Even a slight edge can prove a game changer for the company. Lendf can come handy in the local market, especially the USDT lending service. With $7 billion worth of assets, Tether is the current king amongst stablecoins in terms of market cap. dForce competitors Aave and Compound do not offer USDT lending solutions. This presents a clear opportunity to dForce to exploit the USDT lending market via Lendf.