Introduction

The current market cycle is driven by three major trends

The first major trend is that with the emergence of modularised blockchains, we also see the proliferation of new ecosystems emerging for different use cases such as artificial intelligence, gaming, decentralized finance, internet of things, so on and so forth. what we observe is that with these new emerging ecosystems will also create a corresponding supply of liquid staking tokens (LSTs) that generate yield and will initially have limited utility. An opportunity emerges for projects to take advantage of this yield to create value for stakers and the ecosystem.

The second major trend is omnichain points farming. Ecosystems are bootstrapping liquidity pre-token with points farming where liquidity is attracted from other chains to theirs with the promise of points that can be redeemed for airdrops at an undefined future date. For liquidity providers, there is a real desire to participate in these flows as they can be extremely profitable. The dilemma faced by many liquidity providers is that their alt token holdings might not be as relevant for this activity; only token majors tend to have sufficient utility for points farming and stacking on different projects to make the risk reward make sense.

The third major trend is that in this bull market, on chain borrow fees for USDC and USDT are at all time highs ranging from ~15-60%. As traders go max long and loop on lending markets, the search for cheaper leverage will only intensify.

Monroe represents a groundbreaking decentralized protocol to take advantage of these three major trends with the creation of an omnichain stablecoin protocol to mint the MonUSD stablecoin.

MonUSD accepts non-yielding major tokens such as wBTC and the new world of liquid staking tokens (LSTs) and Liquid Restaking Tokens (LRTs). Through the utilization of Layer Zero OFTv2, we enable the seamless generation of omnichain synthetic assets. These synthetic assets can be used for omnichain points farming and enable cheap leverage.

The technical design is iterated from industry leaders like Liquity, Lybra, and Prisma to improve capital efficiency and safety.

Monroe is currently prioritising integrations on Avalanche, Manta, Merlin and IOTEX. More chains will be integrated as the project continues to iterate.