Corporate Finance, DeFi, Blockchain, Web3 News
Corporate Finance, DeFi, Blockchain News

Marginfi Raises $3M In Seed Round To Build The First Cross-Margining Engine on Solana

Marginfi Raises $3M In Seed Round Co-Led By Multicoin Capital and Pantera Capital To Build The First Cross-Margining Engine on Solana.

Cross-margining engine to launch into DevNet in Q1, unlocking portfolio-level cross-margining across Solana DeFi.

Mrgn Labs, the core contributing team to Marginfi, a decentralized margin protocol for Solana DeFi, today announced Marginfi has raised $3 million in a seed financing co-led by Multicoin Capital and Pantera Capital with participation from Sino Global Capital and Solana Ventures. The funds will be used to drive community and ecosystem development, launch the protocol into DevNet in Q1, and support institution and partner integrations.

Trading margin refers to the act of borrowing money to buy financial assets. Traders use margin to take on leverage and gain exposure to attractive assets in a more usable and capital-efficient way. Launching on Solana, Marginfi is a protocol that makes it easy for traders to manage open positions across different DeFi protocols through a single, unified account.

“In 2021, we saw an explosion of innovative financial products emerge across DeFi. 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,” said Edgar Pavlovsky, Founder, Mrgn Labs. “In 2022, we can finally break down these silos and make the entire ecosystem more composable.”

With Marginfi, traders can manage a custom portfolio across different DeFi protocols through a single trader account. For example, Marginfi allows traders to combine a long perpetual position on Drift, with a short options position on Zeta, and a pari-mutuel position on Hxro Network, unlocking a suite of new composable strategies. Traders can then manage these underlying positions through their Marginfi account, using a margining engine that both accounts for the separate positions’ weighting while also providing boosted yield on idle margin.

Traders can also interact with Marginfi’s cross-margining engine through a simple API. Using Marginfi’s infrastructure, traders can manage margin across currently-closed trading ecosystems and specify custom exposure to derivatives, exchange arbitrages, delta-neutral trading strategies, cash-and-carry trades, or options arbitrages. From there, traders can rebalance their portfolio on the upside, remove single protocol liquidation risk on the downside, and compose a complex portfolio with products at the best prices across Solana DeFi.

As the protocol approaches DevNet launch, Marginfi is whitelisting initial protocol integrations to provide traders expanded access to Drift, Zeta, Hxro Network, PsyOptions, and more. The project is also partnering with seed investors to provide strategic support in the core areas of cross-chain strategy, organizational resources, technical expertise, and ecosystem partnerships.

“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,” said Kyle Samani, Managing Partner, Multicoin Capital. “Marginfi is building the first DeFi-native prime broker, and it’s only possible because it’s being built on Solana.”

The protocol is focused on bringing “institutional-grade margining” to DeFi for its institutional partners and trading firms. As crypto assets reach larger audiences, there is increased demand for institutional-grade products that cater to the needs of experienced investors who seek to balance upside with risk mitigation. While institutional investors have historically adopted a wait-and-see approach to crypto, 2021 marked a change in attitude and greater demand for products and services that meet their specific needs.

“Trading firms continue to tell me their needs surrounding a unified global account to manage assets. They love how this approach provides an upgraded risk framework to move quickly with exposure to underlying trading protocols – because now there are default safeguards at the global account level. Given that context, Marginfi is a way for trading firms to globalize on-chain positions and effectively execute arbitrage through a single account,” said MacBrennan Peet, Head of Growth, Mrgn Labs.

Mrgn Labs is focused on whitelisting new institutions with the goal of $1B moving through the protocol by end-of-year.

The team at Mrgn Labs also plans on launching several trader-focused initiatives at the intersection of curated retail and institutional traders in Q1 leading up to its DevNet launch. To be the first to know about these updates, please visit our Twitter or Discord.

About Mrgn Labs
Mrgn labs is a team focused on democratizing essential financial infrastructure for the betterment of mankind. The team is composed of world-class talent from a diverse set of industries, united by deep convictions on the evolution of finance.

About Marginfi
Marginfi is a decentralized portfolio margining protocol for trading on Solana. The protocol gives traders a unified account to access margin, compose a portfolio, and improve capital efficiency across underlying trading protocols.

About Multicoin Capital
Multicoin Capital is a thesis-driven investment firm that invests in cryptocurrencies, tokens, and blockchain companies. Crypto networks and companies will create trillions of dollars of value over the next decade. But investing in tokens is fundamentally different than investing in companies. New tools, heuristics, and security measures are needed to responsibly invest in this ecosystem. We leverage our deep understanding of blockchain technology and crypto markets to deliver exceptional returns.
About Pantera Capital

Pantera Capital is the first institutional investment firm focused exclusively on bitcoin, other digital currencies, and companies in the blockchain tech ecosystem. Pantera launched the first cryptocurrency fund in the United States when bitcoin was at $65/BTC in 2013. The firm subsequently launched the first exclusively-blockchain venture fund. In 2017, Pantera was the first firm to offer an early-stage token fund. Pantera Bitcoin Fund has returned over 65,500% in eight years and has returned billions to its investors. Pantera manages $5.5bn across three strategies – passive, hedge, and venture - exclusively focused on bitcoin, other digital currencies, and companies in the blockchain tech ecosystem.


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Mercredi 23 Février 2022