MonoX, the automated market maker, recently announced the launch of its mainnet, providing investors a complete set of swap and liquidity capabilities on the Ethereum and Polygon blockchains.
Through the new service, MonoX aims to establish an accessible and cost-effective infrastructure for liquidity providers looking to roll out their projects to the market and the traders looking for engagement with token swap services.
In traditional Decentralized exchanges like dYdX, projects have to provide two tokens to create a liquidity pair for increasing the capital barrier for entry. However, with the single-sided liquidity option, projects will not have to involve two tokens. They will only be required to stake their native token, which leads to an increased liquidity offering to the market.
As per the announcement by the company, the liquidity pools implemented during launch are on: On Ethereum, include Ether (ETH), USD Coin (USDC), Wrapped Bitcoin (WBTC), and Tether (USDT); on the polygon, include Polygon (MATIC), USDC, WBTC, USDT, and Wrapped Ether (WETH).
In September, the AMM announced its successful $5 million fundraising round, aiming to support the decrease in mandatory capital and liquidity levels for DeFi projects that provide the option of the swapping, lending, and borrowing derivatives on Decentralized exchanges.
Currently, the project is still under development. However, the announcement is a sign of transition to full-scale implementation in the DeFi space.
MonoX could lead to wider DeFi ecosystem
Ruyi Ren, the Chief Executive Officer (CEO) of MonoX, also talked about the possibility of having a wider DeFi ecosystem as a result of the Value Backed Tokens.
Value Backed Tokens (VBT) are tokens that other assets already support. Financial derivatives, NFT-shards, game tokens are all in this category, including DAO token and even stablecoins. MonoX does not require additional collateral; therefore, it can be tradable on a MonoX without a capital requirement when a staked Ethereum is minted.
