Automated market maker (AMM) MonoX Protocol has just closed a $5 million funding round that will allow decentralized finance (DeFi) projects to launch their tokens using its single-sided liquidity pools.
Participants in the fundraising include Krypital Group, which led the round, as well as Axia8 Ventures, Animoca Brands, Divergence Ventures, Youbi Capital, Rarestone Capital, LD Capital, GenBlock Capital, 3Commas, OP Crypto and Blockdream.
Ruyi Ren, founder and CEO of MonoX, said:
"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."
The funds will be used to expand the team and develop and build the project's community in new DeFi ecosystems like Solana.
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One of the most important features of MonoX is that it allows developers to list their tokens without the burden of bringing another asset.
In addition, the single-sided liquidity design reduces trading fees by avoiding the lengthy transaction paths seen on traditional automated market makers (AMMs).
MonoX plans to roll out its mainnet on Ethereum and Polygon in Q3 2021 with full swap and liquidity features.