The decentralized financial alliance, Open Defi, has announced that it will create a decentralized autonomous organization, or DAO, to support its vision of an open and global cross-chain Defi ecosystem.
The alliance was launched in late 2020 with the aim of uniting Western and Eastern challenge projects and has since seen some of the major sector projects join its ranks, including Aave, Synthetix and Balancer.
Responsibilities for Open Defi DAO, or OD DAO, will include launching Defi products across multiple layered networks and exploring multi-chain applications for emerging decentralized assets, including data tokens and non-fungible tokens.
The DAO will also incubate infrastructure and protocols in the early stages, and will seek to “generate long-term value through community-based strategies”. Marek Laskowski of Open Challenge stated:
“Open DAO’s goal is to develop a truly integrated multi-chain challenge ecosystem that will open up liquid markets and establish a new operating system for finance. With the support of our members and our community of more than 10,000 challenge developers and strategists around the world, we hope to accelerate the next generation of challenge «.
The DAO will be governed by the community through a government token, with an announcement emphasizing that “anyone can join” the organization without permission.
To celebrate the new DAO and support Defi’s decentralized financial development, Open DAO and Gitcoin launched a hackathon on May 3rd. The event has been sponsored by more than 20 major disability projects, including Uniswap and Polygon, with more than $ 100,000 in prizes to be awarded to hackathon winners.
Open defi was launched by blockchain startup Conflux Network in September 2020 with the support of the Chinese central government’s Technology and Shanghai Committee, describing its mission as uniting the decentralized financial markets of East and West. By November, the alliance had doubled its membership to cover 16 companies, including four of the 20 largest challenge protocols for total blocked value.
In addition to several heavyweights in decentralized finance, the Open Challenge member currently includes notable players within the broader cryptocurrency sector, including the fundraising platform Gitcoin and venture capital firm Sequoia Capital.
Decentralized autonomous organizations have experienced strong growth in the last six months, with the combined assets under management, or AUM, of the DAO ecosystem increasing by more than 600% from $ 140 million as of November 5, 2020 approximately $ 1 billion at present, according to data provider DeepDAO.
DeepDAO currently tracks 108 different DAOs, of which 24 have more than $ 1 million in assets and 17 comprise more than 100 members.