Home Reviews MonoX Raises $5M to Disrupt Traditional DEXs Using Single-Sided Liquidity Pools

MonoX Raises $5M to Disrupt Traditional DEXs Using Single-Sided Liquidity Pools

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MonoX Protocol has closed a $5 million funding round.

MonoX Announces $5M Raise

MonoX Protocol, the most capital-efficient automated market maker (AMM) in the DeFi space, is delighted to announce the closing of a $5 million funding round to make it economical for projects to launch their tokens using its innovative single-sided liquidity pools.

Led by Krypital Group, the funding round saw participation from Axia8 Ventures, Animoca Brands, Divergence Ventures, Youbi Capital, Rarestone Capital, LD Capital, GenBlock Capital, 3Commas, OP Crypto, and Blockdream. Ruyi Ren, the founder and CEO of MonoX, said of the raise:

“With a lot of innovation in the DeFi space, over-collateralization has become an increasingly big problem. As the most capital-efficient liquidity solution, MonoX will help more innovative projects succeed. We will use the funding to grow the team, further develop and build our community in new flourishing DeFi ecosystems like Solana.”

Unlike traditional DEXs that require projects to deposit two tokens to build a liquidity pair, MonoX enables developers to list their tokens without the burden of bringing another asset. Projects can launch new tokens without extra capital because they don’t need to deposit a second token to build the pair.

Commenting on MonoX’s approach to capital efficiency, Rarestone Capital partner Derek Hansen said:

“MonoX is tackling the capital inefficiencies caused by liquidity pairs. Project owners can list their tokens without the burden of capital requirements and focus on using funds for building the project instead of providing liquidity. Their novel approach to single sided liquidity is sure to help scale new emerging DeFi ecosystems like Solana and Avalanche. We look forward to their launch and will use our collective resources and expertise to help them succeed.”

The platform groups the deposited tokens into a virtual pair with the vCASH stablecoin, which is backed by all assets in the MonoX pools. It eliminates the capital inefficiencies caused by liquidity pairs.

The single-sided liquidity design reduces trading fees by avoiding the lengthy transaction paths seen on traditional AMMs.

Maggie Wu, the co-founder and CEO of Krypital Group, said of her firm’s belief in the MonoX team:

“Based on our full confidence in the future of DeFi, we have been looking for products that can help DeFi expand and we met the MonoX team. We believe that their ideas can lower the barriers to entry for users, at the same time create greater value for the DeFi field. This is why we decided to invest and incubate this project, and also use our various resources and experience to help them develop.”

MonoX is also a capital-efficient solution to infuse liquidity to Value-Backed Tokens (VBTs) such as synthetics, fractional NFTs, gaming tokens, and insurance tokens. Such assets can be launched and traded with zero collateral, meaning projects and users don’t have to collateralize them a second time with a liquidity pair. MonoX is set to launch its mainnet on Ethereum and Polygon in the Q3 of 2021 with full swap and liquidity features. As a blockchain-agnostic platform, it will also launch on Solana in the near future.

MonoX is the most capital-efficient AMM in the DeFi ecosystem. It empowers developers, traders, and liquidity providers to participate in an open, accessible, and capital-efficient marketplace. MonoX aims to revolutionize DeFi by fixing the capital inefficiencies of the first-generation protocol models. Its single-sided liquidity pools and vCASH stablecoin facilitate lower trading fees, capital efficiency, and the ability to launch tokens with zero additional capital.

For more information, contact Hugh Flood at [email protected]

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