Polygon integrates Manifold Trading, an institutional-grade quant company that aims to leverage data-driven liquidity and institutional-grade execution features for its decentralized finance ecosystem.
Summary
- Polygon Labs is joining forces with quant company Manifold to boost its DeFi ecosystem.
- The platform aims to provide institutional liquidity for its fast-growing market, including fintechs and neobanks.
- Integration comes as institutions are increasingly taking advantage of opportunities within DeFi.
Polygon laboratories announced its moves to join forces with quantitative investment firm Manifold via a press release Tuesday. The goal is to bring institutional-grade liquidity to the decentralized finance ecosystem, Polygon Labs said.
By partnering with Manifold, the DeFi ecosystem in Polygon (POL) can leverage key market features such as tighter spreads, data-driven liquidity management, and consistent pricing. Bringing these to Polygon’s DeFi ecosystem is the next step toward transforming onchain markets amid an influx of institutional capital.
“Access to deep, stable liquidity is fundamental to any mature financial system,” said Maria Adamjee, head of investor relations at Polygon Labs. “Manifold’s ability to actively manage spreads, size and responsiveness across multiple locations makes them an ideal ecosystem partner as we continue to scale institutional-grade DeFi across the Polygon ecosystem.”
Polygon Labs sees growth in DeFi
A game-changer for Polygon is the extensive deployment of its quantitative market-making and on-chain arbitrage strategies.
These will go live on the leading decentralized Polygon exchanges and will be key to price efficiency and reducing dislocations between locations. Manifold’s quantitative trading network also means access to continuous two-sided liquidity.
Manifold also complements infrastructure upgrades such as AggLayer, a decentralized cross-network protocol that unifies cross-chain liquidity.
“This partnership reflects Polygon’s vision to lay the groundwork for a decentralized financial system where liquidity, transparency and performance can match or exceed traditional markets,” Adamjee added.
With liquidity fragmentation a major bottleneck for DeFi adoption, the quest to engage institutional players means providing the market with an environment of professional liquidity management. Polygon’s rollout of the Rio upgrade focused on speed, efficiency and cost.
Manifold, on the other hand, brings predictability, depth, and fair execution to users in Polygon DeFi, making it ideal for participants like fintechs and neobanks. This will benefit segments such as onchain payments and real asset trading.
