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 ascertain an economical and accessible infrastructure for liquidity suppliers in search of to propel their tasks to the market and merchants all for partaking in token swap companies.
Within the case of conventional decentralized exchanges (DEXes) resembling dYdX, it’s essential for tasks to offer two tokens to construct a liquidity pair, a requirement that will increase the capital barrier for entry. With the single-sided liquidity characteristic, tasks solely must stake their native token, which signifies that they will supply extra general liquidity to the market.
In keeping with the official announcement, the liquidity swimming pools applied upon launch are as follows: On Ethereum, property embrace Ether (ETH), Wrapped Bitcoin (WBTC), USD Coin (USDC) and Tether (USDT), whereas on Polygon, property embrace 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) tasks providing swap, borrowing and lending by-product companies on DEXes.
On the time, the undertaking was nonetheless in beta improvement, however this announcement marks a transition to full-scale implementation within the DeFi house.
MonoX CEO Ruyi Ren advised Cointelegraph how MonoX is using single-sided liquidity pool innovation to cut back the barrier-to-entry for brand spanking new DeFi members:
“Protocols that use liquidity pairs end in capital necessities to take part in DeFi being excessive. With our mannequin, all you’ll want to do is deposit your personal token to the pool (0 collateral). Venture homeowners can checklist their tokens with out the burden of capital necessities and give attention to utilizing funds for constructing the undertaking 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 can 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 further collateral so as soon as a staked Ether is minted, it may be tradable on MonoX with zero capital requirement.