Automated market maker (AMM) MonoX has introduced the official launch of its mainnet platform, providing buyers a full complement of swap and liquidity capabilities on the Ethereum and Polygon blockchain networks.
With the discharge of this new service, Mono X is aiming to determine a cheap and accessible infrastructure for liquidity suppliers searching for to propel their initiatives to the market and merchants involved in participating in token swap companies.
Within the case of conventional decentralized exchanges (DEXes) resembling dYdX, it’s needed for initiatives to supply two tokens to construct a liquidity pair, a requirement that will increase the capital barrier for entry. With the single-sided liquidity function, initiatives solely have to stake their native token, which implies that they’ll supply extra general liquidity to the market.
In accordance with the official announcement, the liquidity swimming pools carried out upon launch are as follows: On Ethereum, property embody Ether (ETH), Wrapped Bitcoin (WBTC), USD Coin (USDC) and Tether (USDT), whereas on Polygon, property embody Polygon (MATIC), WBTC, USDC, USDT and Wrapped Ether (WETH).
Final month, the AMM raised $5 million in capital funding to assist the lower of necessary capital and liquidity ranges for decentralized finance (DeFi) initiatives providing swap, borrowing and lending by-product companies on DEXes.
On the time, the mission was nonetheless in beta growth, however this announcement marks a transition to full-scale implementation within the DeFi house.
MonoX CEO Ruyi Ren informed Cointelegraph how MonoX is using single-sided liquidity pool innovation to cut back the barrier-to-entry for brand new DeFi individuals:
“Protocols that use liquidity pairs end in capital necessities to take part in DeFi being excessive. With our mannequin, all it is advisable do is deposit your personal token to the pool (0 collateral). Undertaking house owners can checklist their tokens with out the burden of capital necessities and give attention to utilizing funds for constructing the mission as a substitute of offering liquidity.”
Associated: DeFi liquidity pools, explained
As well as, Ren spoke of the potential affect Worth Backed Tokens might have on the broader DeFi ecosystem:
Worth Backed Tokens (VBT) are tokens which might be already backed by different property. Monetary derivatives, sport tokens, NFT shards, DAO tokens, and even some stablecoins all fall into this class. With MonoX, we don’t require additional collateral so as soon as a staked Ether is minted, it may be tradable on MonoX with zero capital requirement.