The Solana protocol receives seed financing of $ 3 million with the aim of bridging the defi margin trade

The Solana protocol receives seed financing of $ 3 million with the aim of bridging the defi margin trade

A SOLANA-based protocol has lured two large crypto investment companies into a seed financing round based on the vision of simplifying the Margin trade in decentralized financing (DEFI).

According to a press release on Wednesday, Multicoin Capital and Pantera Capital jointly headed the $ 3 million round in the Marginfi protocol, in which Sino Global Capital and Solana ventures also took part.

The financing is used to promote the development of communities and ecosystems, to introduce the protocol into a development network (DEVNET) and at the same time to support institutions and partner integrations in accordance with the publication.

Although it is still in its infancy, there is hope of starting the Devnet of the protocol until the first quarter of this year with the aim of concretizing its interoperable cross -protocol offer. The aim of Marginfi is to offer institutional partners and trading companies that interact within the Solana ecosystem at "institutional level".

The trading range refers to borrowing for the purchase of financial investments. Traders who use margins are trying to build up a leverage in a more capital -efficient way and to gain engagement in assets.

It is expected that Marginfi will develop its protocol to make it easier to deal with traders, to act margin and to manage open positions via various defi protocols via a single dashboard.

"In 2021 we saw an explosion of innovative financial products all over Defi," said Edgar Pavlovsky, founder of Mrgn Labs - the core team of Marginfi.

"The problem is that the trade experience is now extremely fragmented across different minutes, which destroys capital efficiency and prevents traders from bringing their positions together in a uniform account."

Marginfi will enable dealers to interact with their cross-margining engine via an application programming interface in order to control several derivative positions. For example, a dealer could combine a long-perspetual futual position on Drift with a short option position on Zeta and a Parimutuel position on HXRO Network, said Mrgn Labs.

"This approach offers an improved risk frame to quickly move into the underlying trading protocols with the commitment," he said mrgn Labs growth manager Macbrennan PEET. "Marginfi is a way for trading companies to globalize on-chain positions and effectively carry out arbitrage via a single account."

mrgn Labs said that it focuses on putting new institutions on the white list with the aim of moving $ 1 billion through the protocol by the end of the year and plans to start several dealer-oriented initiatives beforehand.

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The article Solana Protocol Gets $ 3m in Seed Funding with Aim to Bridge Defi Margin Trading is not a financial advice.