MonoX and StaFi Collaboration
MonoX is excited to announce that we are partnering with liquid staking project StaFi (Staking Finance) to create a pool. The partnership between MonoX and StaFi will bring the most capital-efficient liquidity to staked tokens.
Liquid staking protocols unlock the staked assets
In a Proof-of-Stake protocol, blockchain validators are required to lock an amount of their assets for a long time as collateral, referred to as their ‘stake’. This mechanism introduces responsibility to maintaining the public ledgers secure and healthy. The drawbacks of this system are that rewards are fixed, validators are not paid proportional to their stakes, and stakeholders are unable to invest, trade or stake elsewhere, limiting their opportunities of generating even higher returns on their staked assets. This is where the Liquid Stacking concept comes along. Tokenized derivatives are created that mimic the value of the original assets, which are allowed to be freely traded, while still earning staking rewards.
StaFi is a DeFi protocol built to unlock liquidity of staked assets. The asset holders are staking through staking contracts built in StaFi protocol, and receive derived tokens called ‘rTokens’ in return, such as rETH, rATOM, rDOT, etc. rTokens hold the same value as the original assets, are freely tradable, and can get the same staking rewards from the original blockchains. StaFi will create pools for their rTokens on our platform, giving their users a more capital-efficient way to trade and provide liquidity.
Value Backed Token Liquidity with MonoX
With our single token pool design, we are the most capital-efficient solution to bring more liquidity to rTokens, and other tokens that are already backed by value. This is not just about unlocking locked stakes, but unlocking the ability to profit from anything that you own or have access to. As more and more real-world or digital assets get tokenized, MonoX aims to be the main hub to trade those ‘Value Backed Tokens’:
Synthetics (already backed by assets used to mint them)
Synthetic assets are tokenized on-chain representations of other usually physical assets, like gold, real estate or stocks. These ERC20 tokens represent ownership, so you can trade or transfer, without needing to actually have the original assets moved. This is especially great for borderless transactions.
Fractional NFTs (already backed by the NFT itself): Very simple idea, if one can own an NFT, then they can share that ownership with as many people they want, creating fractions of the NFT. Imagine owning a slice of the rights to the latest album from your favorite artist, that you could trade on MonoX at the height of their career, earning you a bit of return on your investment.
Gaming tokens (already backed by in-game assets: In NFT gaming, any asset in the game like armor, character upgrades, spells, can become NFT and can easily be traded as tokens on the blockchain and on MonoX.
Insurance Tokens (already backed by assets used as collateral): Such tokens represent an individual’s participation in a decentralized insurance protocol, in addition to policy and payout rules. The funds contributed by the participants become the payout pool, and because it’s all tokenized on the blockchain, payment processing and exchange of collateral is done almost instantly.
This basket of assets has grown exponentially in 2021 and will continue to increase. MonoX has the perfect solution to capture such value and offer frictionless, secondary market liquidity on a global scale.
MonoX introduces the premier bootstrap decentralized exchange, Monoswap. 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.
It works by grouping deposited tokens into a virtual pair with our own vUSD stable coin, to offer a single token pool design.
MonoX will revolutionize the DeFi ecosystem by fixing the capital inefficiencies of current protocol models. With lower trading fees, capital efficiency, and zero-capital token launching — MonoX will expand the capabilities of DeFi.
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