Multicoin Says 'Super Apps' Plan Behind $1.5M DeFi investment

Blockchain and cryptocurrency venture capital firm Multicoin Capital has led a $1.5 million seed round for Chinese decentralized finance (DeFi) protocol dForce. 

Mable Jiang, the principal of crypto venture capital firm Multicoin Capital, told Cointelegraph that dForce’s plan to launch a "super-app"-styled DeFi platform in the Asian market was a major factor in the firm’s decision.

An Asian super app like WeChat

Jiang emphasized dForce’s presence within the Asian and Chinese markets as a draw, stating, “We always believed that Asia, and more specifically China, will become a pivotal market for the adoption of Open Finance.” She said that dForce's project "is more aligned with the Asian user behavior.”

The protocol is building what Multicoin describes as “the first ‘super-network’ of DeFi protocols” — likening the platform to Asia’s leading super-apps such as WeChat and Alipay. 

According to Defipulse, dForce is currently the seventh-largest DeFi platform by locked funds with $23.9 million invested into its two protocols — stablecoin USDx, and lending protocol Lendf. DForce is reportedly the largest platform for stablecoin lending in China.

Huobi Capital and China Merchant Bank International (CMBI) also participated in the round, with CMBI having exclusively invested in dForce’s last fundraising round.

China’s nascent DeFi sector

Jiang stated that she first met dForce’s founder during the summer of last year:

“I've been following dForce's development since then and saw their impressive growth in their first money market protocol Lendf.me. Last December in a catch-up session I had with their early investor CMBI, I got very excited about their vision of becoming a global network of DeFi protocols with a Chinese Launchpad.” 

She said that dForce was then “looking for a strategic investor that could bring them resources that they need for further expansion.” Jiang describes the partnership as mutually beneficial, noting that dForce has facilitated Multicoin establishing further connections in China.

Despite her optimistic expectations for dForce’s growth in China, Jiang noted that DeFi in the country is still in its early stages of development, adding that greater education regarding the sector is needed to drive widespread adoption.

Through allowing its protocol to be accessed through popular front-ends like exchanges and wallets, Jiang expects that dForce will continue to drive Chinese DeFi adoption.