“Interoperability between the different blockchain ecosystems remains a top priority for the cryptocurrency industry. With the help of renowned aggregators like OpenOcean, these processes become a lot more straightforward. Huobi Ventures acknowledges this protocol’s potential and made a strategic investment to connect CeFi and DeFi.
Connecting Different Blockchains
The initial phase of cryptocurrency and blockchain development primarily focused on competition. Every project wanted to be slightly better or different from the previous one, allowing many exciting innovations to happen. However, the closed-loop nature of these projects brings forth new inefficiencies. Rather than having every ecosystem exist on its own, it is now essential to achieve interoperability. That is easier said than done, as blockchains are, by default, incapable of communicating outside of their network.
With the help of smart contract technology, that situation has become less outspoken. As an extension of the blockchain, these contracts can interface with the outside world. That allows for creating a “bridge” between different ecosystems to exchange value and data. Slowly but surely, interoperability across various networks is becoming the norm rather than an exception.
Aggregating the interoperability of different blockchains will create a more appealing and accessible ecosystem. OpenOcean is a pioneering full aggregator with a strong focus on blockchain interoperability. It acts as a bridge between centralized and decentralized finance, allowing for innovative use cases to be explored. In its current state, DeFi is significantly fragmented due to the lack of communication between different blockchains.
The Success of OpenOcean
As there is now a growing focus on bridging CeFi and DeFi, projects like OpenOcean attract much attention. Following a $2 million investment by a group of investors including Binance, CMS Holdings, LD Capital, and others, the company is now on Huobi Ventures’ radar. Thanks to this investment, OpenOcean and Huobi Global’s teams will work together to connect DeFi and CeFi. The main objective is to achieve higher capital efficiencies and profits for trading strategies.
This investment is not entirely surprising. Since its inception in Q3 2020, OpenOcean has facilitated over 730,000 transactions, equal to roughly $2 billion USDT in cumulative transaction volume. Aggregating the DEXes on Binance Smart Chain, Ethereum, Ethereum Layer2, TRON, and Solana has proven a successful recipe for this project. The team will integrate more DeFi protocols running on the Polygon ecosystem over the coming months.
OpenOcean co-founder Cindy comments:
“Leading exchanges that are building in both DeFi and CeFi are investing in OpenOcean because of the value we bring as the first aggregator that connects these two previously isolated worlds. We now have, what we believe is, the best possible group of investors supporting us to facilitate our innovative products and ecosystem development.”
For a project like OpenOcean, there is no time to stand still. The team is already looking at enhancing its product suite through derivatives, lending, and insurance. There’s also a focus on combined margin products, intelligent wealth management services, and yield products. Many opportunities wait for this popular aggregator tackling CeFi and DeFi opportunities.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.”
Source: Crypto Daily™