Introducing MonoX: The Future of DeFi
Expected launch Q2 2021*
We are excited to present you with the next generation of Decentralized Finance (DeFi) protocols — MonoX
MonoX is a new breed of Automated Market Maker in the DeFi arena. We have built a new AMM using a single token pool design. It works by grouping deposited tokens into a virtual pair with our own vUSD stable coin.
MonoX will revolutionize the DeFi ecosystem by fixing the capital inefficiencies of current protocol models. If you want lower trading fees, capital efficiency, and launch a token with zero capital — then you are in the right place. MonoX will expand the capabilities of DeFi.
What we have to offer:
- Capital Efficiency
- Single Token Liquidity
- A new stable coin vUSD backed by the liquidity in our pool
- 100% capital saving for new projects launching token
- Lending and Swapping sharing the same pool = Boosted LP Profits
What makes MonoX so unique?
- Single Token Liquidity
Unlike many other protocols that require two or more tokens deposited into the pool, MonoX makes use of single token liquidity.
Single token liquidity on MonoX works the same as regular liquidity pools
You can deposit liquidity, and receive LP tokens representative of your share of the pool reserve. Swapping works the same way. Every swap will exchange Token A to vUSD and then vUSD to Token B. However, what makes MonoX unique is that you only need to deposit one token to the pool, and each pool is grouped in a virtual pair with the vUSD stablecoin.
Benefits of Single Token Liquidity pools:
- More capital efficient
- Lower trading fees — Cheaper than Uniswap on average
- Users only need to supply Token A to be an LP
- Projects can launch their token with zero capital (no ETH needed to create the pair)
- Less capital siloed in multiple pool pairs
- Allows for borrowing and lending from same pool
2. vUSD Stablecoin
Lack of transparency, Unexpected Liquidation, Algorithmic faults.
These are all problems that plague stablecoins that the MonoX vUSD stablecoin tackles and solves.
vUSD is our new hybrid collateralized/algorithmic stablecoin. vUSD is backed by all the assets in MonoX pools. It is programmed to have no slippage and always peg to USD 1:1. It is represented as a balance in the liquidity pools, and therefore is ‘virtual’.
Users can swap vUSD for any token available in the pool, where 1 vUSD is always valued at 1 USD. The pool burns any physical vUSD it receives while keeping a theoretically infinite vUSD supply in pricing calculation to ensure no slippage of any kind.
Users can still trade into other stablecoins using MonoX. However, only vUSD is programmatically guaranteed to have no slippage and always peg to USD at 1:1.
Users can swap any ERC token directly to vUSD.
When users withdraw liquidity, they will receive vUSD if the stablecoin virtual balance is positive in an official pool.
Quick vUSD FAQ
How is vUSD Backed?
The pair is virtual. vUSD is a real stablecoin. vUSD is technically backed by all the assets in the pool. However, it’s more accurate to say that it is backed by the sell function because when a user sells into vUSD it mints the physical stablecoin. In essence, vUSD is backed by the liquidity itself, not the assets. vUSD is only backed when there is a positive vUSD balance in the pool. Trustless listing pools cannot go below 0 for vUSD balance.
How does vUSD hold its peg?
All the assets in the pools express their value in terms of vUSD. The supply of vUSD is fixed at infinity which pegs 1:1 with USD.
How would vUSD lose its peg?
If several different assets were artificially held at a price different to the market price, it would cause the vUSD to lose its peg. However, vUSD would retain its peg as arbitrageurs would step in to trade the differences if the assets are not priced similarly to what’s on the market.
Can I use vUSD?
Yes, you can mint vUSD by trading directly into it.
How does pricing work?
We use a similar ratio as Uniswap which forms a price curve. However, ours is based on starting prices and a would-be price. If a user sells from the starting price, the asset depreciates in value. Similarly, if someone buys from the starting price, the asset appreciates in value. Instead of the ratio between Token A and Token B in the xy=k constant product formula. Our pricing algorithm is based on Uniswap’s model found here.
3. Trustless listing & Official pools
Aside from official pools, MonoX will also have “trustless pools”. Trustless listing pools give any user the ability to launch a token and create a liquidity pool. This system is beneficial to our ecosystem for three key reasons.
- Increased Decentralization — The single token design paired with trustless listing means that as a developer or as a project that is just starting out, you do not need a huge amount of capital to launch your token. Projects can save capital for what matters most, development, testing, and auditing.
- Safeguarding users — Trustless listing pools have built-in functionalities to prevent rug pulls and scam token listings. The vUSD balance is not allowed to go past 0. By disallowing the vUSD balance to fall below 0, we can prevent malicious acts and rug pulls by users who launched the token.
- Quality control and regulation — having trustless pools as well as Official Pools can easily separate the scam projects while supporting and promoting genuine projects. DeFi is full of both scammers and incredible innovators, we want to make it easier for the true builders to be recognized.
4. Eradication of lengthy transaction paths
Unlike traditional AMMs, Uniswap for example, MonoX lowers trading fees by avoiding lengthy transaction paths.
Exchanging Token A with Token B always works by swapping Token A to vUSD and then from vUSD to Token B. Thanks to the infinite supply design of the vUSD stablecoin, the price always stays at $1(USD). The swapping method is more optimized than paired liquidity pools because trades between two tokens can often involve multiple pools (and each swap charges a 0.3% fee). Everything trades through vUSD so Token A will not go through a ‘path’ of pairs to reach/swap into Token B. MonoX charges one fee of 0.3% per swap, giving users cheaper trades.
Our Q3 Roadmap:
- Borrowing and lending
- L2
- Derivatives
About the Team:
Led by the CEO and Co-founder, Ruyi Ren, the MonoX team, made up of co-founders Hugh Flood, Anthony Munoz, Yury Labiak, and Brad Liu, has been working tirelessly on the MonoX protocol since October 2020 and bootstrapped the company thus far. As a group of people who love DeFi and are painfully aware of the challenges that people face with the current protocols, we worked on this project with extra passion and dedication. We hope you love it as much as we do.
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