Marginfi’s Solana-based, decentralized financial (defi), margin protocol announced that MrgnLabs raised $3M in seed capital from investors. Marginfi hopes to develop the Solana Blockchain’s first cross-margining algorithm using these newly acquired funds.
Strategic Investors Fund Mrgn Labs with $3 Million
Mrgn Labs revealed Wednesday that the company raised $3 million to help boost defi marg trading. Mrgn Labs was responsible for Marginfi (defi margin protocol) that allows traders to get margin in a distributed fashion. Mrgn Labs revealed that Multicoin Capital was also involved in the financing round. Pantera Capital is another co-lead. The fundraising was also participated by Solana Ventures, Sino Global Capital and others.
“In 2021, we saw an explosion of innovative financial products emerge across defi,” Edgar Pavlovsky, the founder of Mrgn Labs explained during the announcement. “The problem is the trading experience is now extremely fragmented across different protocols, which destroys capital efficiency and prevents traders from combining their positions into one unified account. In 2022, we can finally break down these silos and make the entire ecosystem more composable,” Pavlovsky added.
Marginswap.finance is one of a few existing defi-based margin trading platforms. It allows users to trade tokens up to 5x leverage. The total value locked in Marginswap is currently $4,604,514. This includes BSC (Binance Smart Chain), Ethereum and Avalanche.
Mrgn Labs on the other side wants to boost institutional interest for defi-based margin trades. The press announcement notes that Marginfi is looking to bring “institutional-grade margining” to the defi ecosystem. Kyle Samani, Multicoin Capital’s managing partner believes that a new generation of protocols will soon be available.
“The most important theme of 2022 is composability. The next generation of defi projects will leverage critical composable primitives like Marginfi to deliver experiences that have never been possible before,” Samani explained in a press statement. “Marginfi is building the first defi-native prime broker, and it’s only possible because it’s being built on Solana,” the Multicoin Capital executive noted.
Along with its institutional-grade margining goal the company said it had plans to whitelist additional institutions, with the aim of reaching $1 billion in Marginfi traffic by the end 2022. Mrgn Labs further explained that it plans to initiate a variety of trader-focused initiatives during the first quarter leading up to the project’s Devnet launch.
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