MonoX, an Automated Market Maker (AMM), has declared the authorized release of the mainnet platform thereof, providing investors with liquidity swap capabilities over the Polygon and Ethereum networks. As this latest service is going to be released, Mono X is targeting to construct an accessible and economic infrastructure for the liquidity providers pursuing to push their respective projects towards the traders concerned with being engaged in services related to token swaps around the crypto market.
In the matter of conventional DEXes (decentralized exchanges) like dydx, the projects are required to give two tokens for constructing the liquidity pairs. It is a compulsion that enhances the capital barrier against entry. Having a single-sided feature for liquidity, Projects are just required to stake their local token, implying that they are capable of offering additional liquidity around the market. As per the formal announcement, the implemented liquidity pools take account of USDT (Tether), USDC (USD Coin), WBTC (Wrapped Bitcoin), and ETH (Ether) on the Ethereum network, whereas WETH (Wrapped Ether), USDT, USDC, WBTC, and MATIC (Polgyong) on Polygon.
During the recent month, more than $5 million were raised by the AMM in capital investment to assist in the reduction of mandatory liquidity levels and capital levels regarding DeFi (decentralized finance) Projects providing swap, lending, and borrowing services for derivatives on DEXes. Presently, the beta development of the project is continuously going on; however, this declaration signifies an evolution towards a comprehensive implementation prevailing in the world of DeFi. Ruyi Ren, the CEO of MonoX, described the utilization of innovation of the liquidity pools being single-sided as helpful in giving a provision of reduced barrier-to-entry service to the latest participants of the DeFi.
Protocols utilizing liquidity pairs ultimately necessitate the high capital requirements to have participation in DeFi. With the current model, the only need is to list the respective tokens on the pool. Project owners are allowed to list the tokens irrespective of having bulky capital requirements as well as concentration on utilizing funds to establish the project rather than providing liquidity. Additionally, Ren discussed the probable effect of Value Backed Tokens over the broader ecosystem of decentralized finance.
He moved on to disclose that the VBT (Value Backed Tokens) are in advance backed by other tokens. Some stablecoins, DAO tokens, NFT shards, game tokens, and financial derivatives are all to come under this category. He concluded that they do not need additional collateral, meaning that Ether, after being minted once, can be traded through MonoX without having any capital requirement.