Huobi continues to expand its scope in the decentralized finance (DeFi) scene, as the Huobi Defi Labs inked a partnership deal with cross-chain DeFi platform Kava Labs, to bringing the Huobi BTC (HBTC) token to Kava, while also providing liquidity mining to Huobi users.
CeFi and Defi Coming Together
According to a joint announcement, the partnership between Huobi Defi Labs and Kava would allow Huobi users to carry out yield farming for HBTC using the Kava platform. The collaboration is one of the ways that DeFi is being integrated into a centralized platform like Huobi.
Meanwhile, Huobi would need to comply with Kava’s strict compliance and code auditing procedures, before HBTC gets approval from KAVA holders governance group and node operators. With the above requirement met, users can mint and burn HBTC via the Kava platform.
The HBTC token would also have other uses on Kava, with the announcement stating:
“Following the creation of HBTC as an asset on Kava, it can then be used a collateral for USDX loans in the Kava lending app or as an asset to be supplied and borrowed in the HARD Protocol Money Markets giving HBTC holders the ability to borrow, lend, and earn with HBTC on Kava.”
Both platforms are also planning to onboard other Huobi tokens such as HUSD and HT onto the Kava.
Commenting on the partnership, Huobi vice president Ciara Sun, said:
“Providing our users with diversified DeFi Apps and services is one of our priorities. We chose Kava platform for HBTC yielding in a cooperative mindset to bridge CeFi and DeFi and to introduce diverse instruments and liquidities to the current market.”
Shortly after the creation of Huobi DeFi Labs by the crypto exchange giant Huobi back in August 2020, the platform launched the Global Defi Alliance, amid rising interest in the DeFi sector. The alliance was created to facilitate cross-border collaboration between the West and East.
At the time of the launch, members of the initiative Huobi, and DeFi platforms such as Compound, Maker DAO, dYdX, and Nest were the founding members. Later in September, 10 more members joined Huobi’s DeFi Alliance. They include Synthetix, Aave, Coingecko, Balancer, Curve, among others.