Solana-Based Defi Margin Trading Protocol Raises $3 Million in Seed Funding – Mrgn Labs, the Solana-based decentralized finance (defi) margin technology, revealed on Wednesday that it had received $3 million in seed funding from investors. Marginfi plans to use the newly obtained funds to create the first cross-margining engine on the Solana blockchain.
According to a news statement issued on Wednesday, Mrgn Labs has raised $3 million from investors to help the company expand its defi margin trading capabilities. Mrgn Labs is the creator of the Marginfi defi margin protocol, which allows traders to access margin in a decentralized manner.
Multicoin Capital and Pantera Capital lead the investment round, according to Mrgn Labs. In addition, Solana Ventures and Sino Global Capital took part in the funding.
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During the announcement, Edgar Pavlovsky, the founder of Mrgn Labs, stated, “In 2021, we saw an explosion of innovative financial solutions develop across defi.” “The issue is that the trading experience has become increasingly fragmented across numerous protocols, reducing capital efficiency and preventing traders from consolidating their positions into a single account.” We’ll ultimately be able to break down these silos and make the entire ecosystem more composable in 2022,” Pavlovsky continued.
Margin trading decentralized exchange systems like as marginswap.finance, which allows users to swap tokens with up to 5x leverage, currently exist. Total value locked (TVL) in Marginswap today is $4,604,514 across BSC (Binance Smart Chain), Ethereum, Avalanche, and Polygon, according to metrics.
Solana-Based Defi Margin Trading Protocol Raises $3 Million in Seed Funding – On the other hand, Mrgn Labs intends to increase institutional interest in defi-based margin trading. Marginfi plans to provide “institutional-grade margining” to the defi ecosystem, according to the press release. Kyle Samani, managing partner at Multicoin Capital, feels that a fresh wave of next-generation protocols is on the way.
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“Composability is the most crucial theme for 2022.” In a press statement, Samani noted that “the next generation of defi applications will leverage critical composable primitives like Marginfi to provide experiences that have never been possible before.” “Marginfi is creating the world’s first defi-native prime broker, and it’s only possible because it’s built on Solana,” said a Multicoin Capital official.
In addition to the institutional-grade margining goal, Marginfi says it aims to whitelist new institutions with the goal of moving $1 billion through the platform by the end of 2022.
Mrgn Labs has stated that throughout the first quarter leading up to the project’s Devnet launch, it expects to launch a number of trader-focused projects.