- MonoX has raised $5 million in a funding round led by Krypital Group, with participation from GenBlock Capital and 3Commas.
- MonoX is changing the DEX world by eliminating the need to deposit two tokens to build a liquidity pair as required by other platforms.
MonoX Protocol, an automated market maker that is championing capital-efficient single-sided liquidity pools, has announced the completion of a $5 million funding round. The round was led by Krypital Group and will allow the project to grow its platform as it awaits launching on Ethereum and Polygon later this year and on Solana in the near future.
Animoca Brands, Axia8, Youbi Capital, LD Capital, OP Crypto, Blockdream and 3 Commas are among the investors that participated in the round. Krypital Group, which led the round, has invested in several successes, including Tidal, PARSIQ, Injective, Polkadot and the Oasis Foundation.
Commenting on the funding, Krypital Group CEO Maggie Wu stated:
We believe that their [MonoX] 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.
With traditional decentralized exchanges, users have to deposit two tokens to build a liquidity pair. However, MonoX has flipped this model and allows users to list their tokens without having to deposit another token. This reduces the capital need for the new projects, allowing them to put the money into other aspects such as enhancing their security protocols.
MonoX uses the vCASH stablecoin to make this possible, grouping the deposited tokens into a virtual pair with the stablecoin. vCASH is backed by all the assets in the MonoX pools.
Ruyi Ren, the MonoX cofounder remarked, “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.”
MonoX intends to use the funding to grow the team, the CEO stated. It also plans to expand the community “in new flourishing DeFi ecosystems like Solana,” he added.
The platform is set to launch its mainnet on Ethereum and Polygon in Q3 this year, it revealed in its press release, shared with CNF. It will offer full swap and liquidity features on these two networks.
Derek Hansen, a partner at Rarestone Capital commented:
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.