Huobi Group, the company behind the world’s second largest cryptocurrency exchange (ranked by CoinMarketCap), has created a new division focused on decentralized financial investment, incubation and research (DeFi).

DeFi refers to unsteady cryptocurrency products such as credit logs, decentralized exchanges, and decentralized stablecoins.

Huobi DeFi Labs will start with “tens of millions of dollars” in mutual funds, according to a press release, to help fuel the burgeoning DeFi market.

Huobi has promoted Sharlyn Wu to the new Chief Investment Officer to lead DeFi. Wu most recently headed the blockchain investment department as Managing Director at China Merchant Bank International (CMBI) and previously worked for the Swiss bank UBS for a decade.

“In the past two years we have seen DeFi take shape and grow exponentially,” said Wu. “The breadth, depth and speed of innovation is unparalleled in human history. It is interesting to see the power of the permissionless economy unleashed on a global scale. However, there are still many problems to be solved on a theoretical and technical level. “

Wu also points out such advantages for DeFi as transparency and efficiency compared to the current financial system, along with the elimination of human influence (and error) in decision-making. “Cryptocurrency is a perfect financial system,” he said.

“There is also a lot of work to be done for investors to bring crypto and DeFi to the masses,” she added. “Since DeFi is still in its infancy, the global community needs joint efforts to build and enlarge the space together.”

Huobi DeFi Labs, which will begin with a team of four research and investment professionals, has not yet announced any investments or startups it will incubate. According to the AZCoin NewsCMBI has invested in the wallet startup Bitpie and the public blockchain network Nervos under Wu’s leadership.

Huobi’s proposed stake in and investment in DeFi comes at a time when the market is exploding at an amazing rate, setting new standards every few days. Earlier this week, DeFi market cap was nearly $ 9 billion … after hitting $ 8 billion late last week.

Tokens like LINK, BAND and Nest are currently leading the way in DeFi fees, and the decentralized exchange Uniswap has seen a 15x increase in traffic during the current boom. However, there are growing concerns that this rapid expansion is actually fueling a bubble similar to the 2017 ICO bubble – and could be quite painful if it bursts.

Snow Son Phi Ho

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