Monad: Exploring the Ecosystem of the Most Anticipated L1

What is Monad?

Monad is an L1 blockchain that leverages parallel execution technology to enhance speed and scalability. The team projects a transaction processing capacity of 10,000 TPS (transactions per second).

It is important to note that the platform is currently in its Devnet phase. Therefore, engaging with its ecosystem projects is one of the few activities available to users at this stage.

In April 2024, Monad completed its second funding round, securing $225 million. The round was led by the Tier 1 investment fund Paradigm. Additionally, in May, Monad announced a collaboration with OKX Ventures, although the specifics of the funding were not disclosed.

Details of Monad's second funding round. Source: x.com

DeFi Projects in the Monad Ecosystem

Interacting within the decentralized finance (DeFi) sector is arguably the most intuitive and vital application of any Layer 1 blockchain. Users need infrastructure for staking or restaking, earning from liquidity provision, and asset exchange on decentralized exchanges (DEXs).

The DeFi sector can be categorized into:

• DEX/AMM
• Liquidity Providers
• Lending & Borrowing
• Liquid Staking
• Derivatives Trading
• Prediction Market

Within the Monad ecosystem, there are projects spanning each of these categories. Some have formed partnerships with the Monad team, while others operate independently. Let's explore both kinds of projects.

Ambient Finance

Previously known as CrocSwap, Ambient Finance is a DEX that specializes in concentrated liquidity. The exchange operates through a single smart contract, and each AMM pool functions as a lightweight data structure. 

As of July 2024, Ambient Finance has a total value locked (TVL) of $130 million, spread across the Ethereum, Scroll, Blast, and Canto networks. This figure places Ambient at 21st among all DEXs according to TVL.

Ambient Finance TVL. Source: defillama.com

In October 2023, Monad announced a partnership with Ambient Finance. This signifies that once the Monad L1 blockchain launches, Ambient Finance will become one of the DEXs facilitating asset exchanges on Monad.

Monadex

Monadex, a DEX built on Monad, was created by a team of seven enthusiasts. This exchange is designed to advance the Monad ecosystem and will support exchanges within this network as soon as the mainnet is live. As of this writing, Monadex has not been officially partnered with Monad.

Monadex: A DEX developed by enthusiasts from the Monad community. Source: x.com

Monadex is ramping up user engagement by incorporating a weekly raffle system. Participants who exchange tokens on Monadex receive special tickets, which can then be used to enter a lottery with three prize tiers: 

• Level 1: The winner of the draw receives 45% of the total prize pool.
• Level 2: Two winners are chosen, each receiving 20% of the total prize pool.
• Level 3: Three winners are selected, each receiving 5% of the total prize pool.

In addition to these initiatives, Monadex is running three seasons of MonadeXP—a program designed to accrue points within the project (notably, the first season is already in progress). As the Monad mainnet has yet to launch, the only way to accumulate points currently is through active participation in the Monadex community: helping new members, creating artwork, memes, and more.

SYMMIO

SYMMIO is a platform for decentralized derivatives trading that merges the capital efficiency of off-chain order books with the throughput capabilities of on-chain Automated Market Makers (AMMs), acting as both a communication and settlement layer.

The project operates within the “Derivatives as a Service” (DaaS) niche, simplifying the deployment of derivatives DEXs by managing the complex technical stack required for software development and facilitating liquidity attraction.

Modular Structure of SYMMIO. Source: x.com

While there is no direct confirmation, Monad will probably be among the blockchains supported by SYMMIO. Indications of active interaction between both project teams suggest this potential integration. For instance, a SYMMIO representative participated in the “Monad Mondays” podcast in May 2024.

Other DeFi Projects Supported by Monad

As of July 2024, the Monad ecosystem includes 36 projects, which can be categorized into:

• Official Monad Partners

Projects with confirmed partnerships through official Monad sources, such as Wombat, Catalyst, PancakeSwap, Elixir, Swaap Finance, Timeswap, ACryptoS, and Dexponent.

• Unofficial Monad Partners

Projects building solutions on the Monad platform without formal partnerships, including Tayaswap, ShrimpDEX, Nitro Finance, Pike Finance, Marginfi, MagmaDAO, and others.

Monad continues to attract innovative solutions to its ecosystem by cultivating an active community. As of July 2024, Monad's X account boasts 300,000 subscribers, and its Discord channel is a hub for daily discussions on technical and various other project-related topics.

GameFi and NFT Projects in the Monad Ecosystem

GameFi and NFTs are crucial for enhancing the visibility and engagement of a crypto project: games help draw in users (as seen with TON's Notcoin), while a vibrant NFT subculture can build a robust brand around the platform. 

Poply

Poply is an NFT marketplace on the Monad blockchain, designed to offer functionalities akin to those of other major NFT platforms. This includes features like auctions, trading, and the ability to engage in peer-to-peer NFT transactions.

One unique feature of Poply is the AIFT (AI-Generated Image-to-NFT Feature), an innovation allowing users to create AI-generated art and convert these into NFTs with a simple input prompt.

AIFT: Your Prompt, Your Canvas, Your NFT. Source: x.com

As with many projects within the Monad ecosystem, Poply is still in the pre-launch phase. However, interested parties can currently engage with it by joining the waitlist on the project’s website. While filling out this form may increase one's chances, it does not guarantee receiving potential rewards from either Monad or Poply directly.

Breath of Estova

Breath of Estova (BoE) is a 2D MMORPG built on the Monad network, aimed at driving the ecosystem’s growth by offering a range of gameplay activities, in-game items, and integrations with NFTs and the ESTOVA token.

The game unfolds in the Kingdom of Valura, where players predominantly engage in combat with monsters, bosses, and other players. In addition, they can:

• Create and customize characters;
• Explore an expansive open world;
• Undertake side quests and missions;
• Form and join guilds;
• Collect resources, craft items, and trade with other players.

NFTs play a vital role in Breath of Estova. For instance, NFT Token of Valura holders enjoy enhanced Play-To-Earn rewards, access to exclusive locations, a unique name color, and faster energy recovery. Additionally, BoE players can acquire digital companions as NFT Pets and land parcels as NFT Land, adding layers of depth and investment to the game’s virtual world.

The primary incentive of Breath of Estova (BoE) is ESTOVA—a cryptocurrency integral to the game's economy. It will be used for purchasing in-game items and skins and will also reward players for completing daily quests, exploring dungeons, and selling resources. Additionally, owning ESTOVA grants players voting rights on proposed changes, updates, and new initiatives within the game.

However, it's important to note that GameFi assets, especially those in Play-To-Earn projects, are at risk of losing their entire value. Early users of renowned platforms like Axie Infinity, STEPN, and SweatCoin earned substantial amounts. But as these projects expanded excessively, the value of their assets plummeted.

GMT Price Chart: STEPN's reward token. Source: tradingview.com

Other Projects in the GameFi and NFT Sectors

As of July 2024, most projects within this niche are developed and maintained by enthusiasts rather than major investors, corporations, or influencers. In essence, they are largely grassroots efforts. 

NFT Collections: Monad Nomads NFT, Skrumpeys, Monadians, Blocknads, BOO, SpikyNads, Woolly Eggs, Llmao. 

GameFi: Laniakea, Tezza Poker, Nika, GaFin.

Other Sectors within the Monad Ecosystem

Oracles: Switchboard, Pyth Network. 

Cross-chain Bridges: Wormhole, LayerZero, Axelar Network, Decent. 

Crypto Payments: Phantom Wallet, Rabby, Sphere. 

Tools: Notifi, DreamOS, Parsec, Metadrop. 

AI: AIT Protocol, Batching AI, Monadata. 

RWA (Real-World Assets): Buk Protocol, Zoth.Domain 

Name Systems: Monad Name Service and Nad Name Service.

Domain name systems are more native to Monad, and the best-represented project in this category is likely to form a partnership with this blockchain. 

Monad Domain Name Systems

Popular blockchains can contain hundreds of thousands of user addresses which, by default, consist of a random sequence of letters and numbers. This format can be visually cumbersome and not user-friendly. Therefore, domain name systems for blockchains were developed.

Projects such as ENS (for Ethereum), SNS (for Solana), and Nad Name Service (for Monad) simplify blockchain addresses into readable usernames, like salmo.nad. These addresses are far less susceptible to phishing threats.

Default blockchain address vs. “salmo.nad” domain. Source: x.com

This advancement greatly eases user interactions with dApps. Network participants can use convenient short domains instead of cumbersome crypto wallet addresses, and organize their multi-accounts more effectively, among other benefits.

Final Thoughts

There's a relevant saying in English folklore: “The early bird gets the worm.” This adage aptly encapsulates the success formula in the crypto world.

While some enjoy Coca-Cola as a beverage, others invest in its shares. Similarly, in the world of cryptocurrency, those who spot and seize opportunities tend to secure the most advantageous positions. The Coinomist is here to ensure you stay informed of the latest trends.