According to an announcement issued on Wednesday, Mrgn Labs has secured $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 obtain leverage in a decentralized manner.
Multicoin Capital and Pantera Capital lead the investment round, according to Mrgn Labs. In addition, Sino Global Capital and Solana Ventures took part in the funding.
During the unveiling, Edgar Pavlovsky, the founder of Mrgn Labs, stated, “In 2021, we saw a surge 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 analyze these silos and make the ecosystem more composable in 2022,” Pavlovsky continued.
Margin trading decentralized exchange systems like marginswap.finance, which allows users to exchange tokens with up to 5x leverage, currently exist. Overall value locked (TVL) in Marginswap currently is $4,604,514 across BSC (Binance Smart Chain), Avalanche, Ethereum, and Polygon, according to metrics.
On the other hand, Mrgn Labs intends to increase institutional involvement in defi-based margin trading.
Marginfi plans to provide “institutional-grade margining” to the defi ecosystem, according to the press release.
Kyle Samani, the managing partner at Multicoin Capital, feels that a fresh wave of next-generation protocols is on the way.
“Composability is the most crucial theme for 2022.” In a press statement, Samani noted that “the next generation of defi applications will utilize critical reusable primitives like Marginfi to provide experiences which have never been possible before.”
Blockbuild’s Take
Marginfi is creating the world’s first defi-native prime broker, and it’s only possible because it’s built on Solana.
Adding to the institutional-grade margining goal, Marginfi aims to whitelist institutional arrangements with the goal of moving $1 billion through the platform by the end of 2022.
Mrgn Labs stated that throughout the first quarter leading up to the project’s Devnet launch, it expects to launch a number of trader-focused projects and we believe that this recent funding will help achieve this in the coming months.
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