MonoX, an automated market maker (AMM) aiming to launch in Q3 2021, said today that it has successfully received $5 million in its current fundraising round.
MonoX will use funds to launch AMM
MonoX, an AMM set to launch in Q3 2021, has successfully raised $5 million in seed funding from venture capital companies such as Axia8 Ventures, Animoca Brands, Divergence Funds, and others.
The new funds will be used to help MonoX achieve its long-term goals, which include lowering the capital and liquidity requirements for DeFi applications that provide swap, lending, borrowing, and derivatives services on decentralized exchanges (DEXes).
It’s worth noting that MonoX intends to implement a single-sided liquidity model, in which users can give liquidity in the form of one token in a liquidity pool without risking a temporary loss.
The single-sided liquidity model has advantages over typical dual-sided liquidity pools, including lowering the entrance capital barrier. As a result, single-sided liquidity models allow users to supply greater market liquidity.
Ruyi Ren, the founder, and CEO of MonoX, commented:
“With a lot of innovation in the DeFi space, over-collateralization has become an increasingly big problem. We will use the funding to grow the team, further develop and build our community in new flourishing DeFi ecosystems like Solana.”
The Future Plans
Once a DeFi project provides its native token, MonoX’s vCASH stablecoin will immediately step in as the second token to create the liquidity pair, according to the MonoX protocol.
For the uninitiated, the vCASH token is linked 1:1 to the US dollar and is designed to reduce trading fees connected with transactions in a traditional AMM.
MonoX plans to deploy its mainnet version in Q3 2021 on both the Ethereum and Polygon blockchains. Currently, the protocol is under beta testing.