Some of the biggest players in the world of decentralized finance (DeFi) have come together to form a new alliance called GoodFi. The purpose of this alliance is to promote education, research and best practices of this emerging industry.
The GoodFi alliance consists of the crypto projects Chainlink
, Radix and mStable, as well as the company Messari, which is engaged in digital analysis.
Piers Ridyard, CEO of Radix, said in an interview with Cointelegraph that GoodFi “enables companies operating in the DeFi industry to collectively seek solutions to the problems facing a broader base, starting with those already involved with crypto, but expand to a mainstream audience. ” As a member of GoodFi, companies can share strategies and general knowledge for attracting new DeFi users.
Their mission is to get 100 million people to deposit at least $1 into a DeFi
application by 2025. To achieve this goal, the alliance has prioritized education so that more people can learn about the utility of DeFi applications.
Decentralized finance was one of crypto's most notable growth stories of 2020, with projects like Chainlink and Aave leading the way. LINK is now the world's ninth-largest cryptocurrency with a market capitalization of $11.3 billion. Meanwhile, AAVE is in fourteenth place after a return of 500% in a year.
At the time of writing, nearly $55 billion has been locked into DeFi projects for a range of applications and use cases.
While DeFi has yet to draw a wider audience, early adopters of cryptocurrencies are drawn to the idea that traditional financial services can be recreated or enhanced using blockchain technology. For that reason, DeFi is expected to be one of the most popular verticals in the industry.
Ridyard believes persuading people to put $ 1 into DeFi projects is akin to early adoption of the internet. "Connecting homes was the hardest part," the alliance said about the Internet in the 1990s. "With DeFi, the most difficult step is getting users to deposit their first $ 1."