Monad Joins Orderly Network Ahead of Testnet Launch, Hoping to Cash In on a Second DeFi Summer

Monad, an Ethereum Virtual Machine (EVM) layer-1 blockchain about to launch its testnet, has joined forces with Orderly Network, a decentralized exchange (DEX)

Layer-1 blockchain Monad, which is about to launch its testnet, has joined forces with Orderly Network, a decentralized exchange (DEX) infrastructure. This collaboration aims to enhance cross-chain liquidity and cater to the anticipated surge in decentralized finance (DeFi) activity.

As the testnet of Monad goes live on Wednesday, traders will gain access to a fast EVM-compatible building site and the potential for airdrops on the L1. According to a press release, Orderly boasts a lineup of around 20 market makers, including Wintermute, Selini, and Riverside.

In anticipation of a second DeFi summer, major exchanges like Coinbase (COIN) are hoping for a surge in DeFi activity. This optimism stems from the crypto-friendly stance of President Donald Trump's administration, which is seen as a favorable regulatory tailwind for the crypto industry. The first DeFi summer, which occurred in 2020, was closely linked to the Federal Reserve's interest-rate cuts in response to the Covid outbreak.

Currently, Orderly provides users with a shared order book across multiple blockchains, including Arbitrum, Optimism, Polygon, Base, Mantle, and Near.

“Orderly is an omni-chain trading infrastructure with a focus on solving for fragmented liquidity,” Chief Operating Officer Arjun Arora said in an interview. “With more chains propping up day by day, liquidity continues to get fragmented across DeFi, TVL [total locked value] continues to get moved around.”

In April 2024, Monad Labs closed a $225 million funding round, which was led by Paradigm.