Kintsu Partners with Primex Finance: Leveraging sMONAD for Monad's DeFi Growth
Posted August 12, 2024
We are excited to announce our partnership with Primex Finance, a leading decentralized finance (DeFi) platform known for its innovative trading solutions and liquidity management. This collaboration is set to strengthen the Monad ecosystem by integrating Kintsu’s liquid staking token, sMONAD, into Primex’s Universal Leveraged Portfolio solution. Together, we aim to enhance capital efficiency, liquidity, and overall user experience within Monad’s DeFi landscape.
About Primex Finance
Primex Finance is a leading platform for trading any asset with leverage on the spot market via decentralized exchanges (DEXs). The protocol currently supports prominent DEXs such as Uniswap, PancakeSwap, Sushiswap, Curve, and Balancer across multiple EVM-compatible blockchains, including Polygon, Arbitrum, and Ethereum. With a strong focus on decentralized, non-custodial trading, Primex Finance enables users to retain complete control over their funds while trading and lending on the platform. The protocol’s decentralized nature protects Lenders and Traders from the counterparty risks associated with traditional brokerages and centralized exchanges (CEXs).
Primex Finance is also set to evolve into an oracle-agnostic protocol, supporting diverse price data sources, including Uniswap v3 and other oracles beyond Chainlink. This evolution will enable projects to swiftly launch their tokens on the platform, fulfilling retail traders’ demands by offering leverage trading options for newly listed assets that might otherwise be unavailable on CEXs and DEXs.
Primex v2 represents the next significant upgrade to the Primex Finance platform, expected to roll out later this year. This version will introduce Portfolios as a core ecosystem element, which are combinations of Positions representing any type of debt or value in fungible tokens or NFTs. Marking a new era for the protocol, Primex v2 will expand its functionality beyond spot margin trading to include a range of leveraged operations. These operations will encompass leveraged lending, liquidity provision, liquid staking, liquidity for options protocols, looping strategies, and utilizing trading positions in yield-generating protocols.
The deployment of Primex v2 on Monad, a high-throughput Layer 1 blockchain, is a strategic move designed to harness Monad’s full EVM compatibility, 10,000 transactions per second (TPS), and 1-second block times and finality. This high-throughput environment is crucial for efficiently creating and launching sophisticated financial instruments with leveraged operations. By leveraging Monad’s scalable and rapid transaction capabilities, Primex v2 aims to provide seamless access to these advanced financial instruments with affordable transaction fees, broadening the accessibility of leveraged operations for the average protocol’s user.
Enhancing Monad’s DeFi Ecosystem with Primex v2 & sMONAD
Our partnership with Primex Finance brings significant benefits to the Monad ecosystem through the integration of Kintsu’s liquid staking token, sMONAD. By leveraging sMONAD, users can participate in advanced DeFi strategies via Primex v2 while their MONAD tokens remain staked and continue to generate rewards.
Key Benefits of the Partnership
Optimized Leveraged Operations: sMONAD can be used within Primex’s leveraged operations, allowing users to maximize their returns. For instance, Portfolio owners on Primex v2 can borrow tokens to invest in sMONAD, amplifying their staking rewards while maintaining liquidity.
Enhanced Yield Strategies: Users can implement looping strategies by using sMONAD as collateral to secure other positions within their Primex v2 portfolios or lend it to other users and earn high APY based on borrowing fees. This approach not only enhances liquidity but also allows for more efficient use of assets, leading to greater potential returns.
Increased Liquidity: The integration of sMONAD into Primex v2 ensures that staked assets remain liquid, supporting various DeFi activities without locking up funds. This increased liquidity is crucial for fostering a dynamic and resilient DeFi ecosystem on Monad.
Seamless Staking Experience: Kintsu’s protocol simplifies the staking process by automatically managing the delegation of MONAD tokens to a decentralized set of validators. This provides users with a seamless staking experience, allowing them to focus on maximizing their DeFi strategies within their Portfolios in Primex v2.
Building a Resilient Future Together
This partnership represents a significant step towards building a more resilient, efficient, and user-friendly DeFi ecosystem on Monad. By combining Kintsu’s innovative liquid staking solutions with Primex v2 advanced leveraged portfolio management tools, we are poised to drive significant growth and innovation within the Monad ecosystem.
Conclusion
Our collaboration with Primex Finance marks a pivotal moment for the Monad ecosystem. By integrating Primex’s sophisticated trading and liquidity management tools with Kintsu’s sMONAD, we are ensuring that Monad can scale efficiently and securely to meet the needs of its growing user base. We are excited about the potential this partnership holds and remain committed to advancing decentralized finance on Monad.
Stay tuned for more updates as we continue to develop and expand our capabilities.
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