MonoX Protocol, which claims to be the “most capital-efficient” automated market maker (AMM) in the fast-growing decentralized finance (DeFi) sector, has announced the launch of its highly-anticipated mainnet on Ethereum and Polygon networks. This, after acquiring $5 million in funding via a strategic round last month, in order to make it more practical for initiatives to launch their cryptocurrency tokens using its single-sided liquidity pools (LPs).
MonoX Protocol’s funding round was led by Krypital, Axia8 Ventures, MarketAcross, Animoca Brands, Divergence Ventures, Youbi Capital, Rarestone Capital, LD Capital, GenBlock Capital, 3Commas, OP Crypto, and Blockdream.
Ruyi Ren, Founder and CEO of MonoX, stated that with a lot of innovation taking place in the nascent DeFi industry, over-collateralization is becoming a huge problem. As one of the most capital efficient liquidity services, MonoX will aim to support innovative projects, Ruyi added, while confirming that they’ll use the proceeds to expand their professional team, further build their community “in new flourishing DeFi ecosystems like Solana.”
Building Trading Pairs without Requiring Additional Tokens
Unlike the typical DEXes that in the market that make it compulsory for platforms to deposit two tokens to establish a liquidity pair, MonoX allows developers to list their cryptocurrency tokens without having to add another asset. Projects may easily issue new tokens without needing additional capital since they aren’t required to deposit a second token to create the pair, the announcement explained.
The platform will simply group the deposited tokens into a digital pair along with the vCASH stablecoin, which is reportedly backed by assets in the MonoX pools. This pairing method “eliminates the capital inefficiencies caused by liquidity pairs,” the release noted.
The single-sided liquidity design aims to lower platform trading fees by “avoiding the lengthy transaction paths” that we typically see on automated market makers (AMMs) currently available in the market.
Effectively Adding Liquidity to Value-Backed Tokens
MonoX is described as a “capital-efficient” service that effectively adds liquidity to Value-backed Tokens like synthetics, fractional NFTs, gaming tokens and insurance tokens. These types of assets may be issued and traded without putting up extra collateral, meaning that initiatives and platform users need not collateralize them a second time with a liquidity pair.
MonoX is now set to launch its mainnet on the Ethereum (ETH) blockchain and Polygon (POLY) with “full swap and liquidity features,” the announcement confirmed. As a blockchain-agnostic platform, it will also be launched on Solana at some point in the future.
As noted in the update, MonoX is said to be the “most capital-efficient” automated market maker (AMM) in the DeFi sector. MonoX aims to empower software developers, crypto traders, and LPs to actively participate in an open, accessible, and capital-efficient marketplace.
MonoX aims to streamline DeFi by “fixing the capital inefficiencies of the first-generation protocol models.” Its single-sided LPs and vCASH stablecoin aim to “facilitate lower trading fees, capital efficiency, and the ability to launch tokens with zero additional capital.”
