Momentum Finance, as soon as identified primarily as a decentralized alternate (DEX), has been executing a complicated pivot, positioning itself as a complete “Monetary Working System” (FOS) inside the Sui ecosystem. This shift represents a imaginative and prescient that goes far past easy token swaps, aiming to construct the foundational infrastructure for the subsequent period of tokenized finance.
To know the technique behind this evolution, from its three-layer structure to its institutional gateway Momentum X, we sat down with ChefWEN, Founding father of Momentum Finance, to debate the agency’s imaginative and prescient, key merchandise, and the trail to bridging conventional and decentralized finance.
Imaginative and prescient and Structure: Constructing the Monetary Working System
Momentum Finance has developed considerably from its preliminary launch right into a “Monetary Working System.” Might you clarify the imaginative and prescient driving this transformation?
ChefWEN: Our imaginative and prescient stems from a easy remark: DeFi remains to be a group of fragmented, standalone purposes. For it to succeed in the subsequent billion customers, it wants the cohesion and reliability of a contemporary working system. Momentum is constructing that foundational layer.
We began as a DEX as a result of liquidity is the guts of finance. However a coronary heart wants a circulatory system. And our ‘Monetary Working System’ gives that: a seamless, interconnected layer the place protocols can entry deep liquidity, handle their treasuries, and even launch their tokens, all constructed on a safe and scalable infrastructure. We’re not only a place to swap tokens; we’re the platform upon which the way forward for finance is being constructed.
Why did Momentum Finance select Sui as its core infrastructure, particularly given the maturity of different chains?
ChefWEN: This was a strategic, not only a technical, choice. We evaluated established chains and located that their scalability limitations and excessive charges would in the end cap the sophistication of the purposes we might construct. Sui, with its object-centric mannequin and the Transfer language, was constructed for the type of high-throughput, advanced monetary operations we envision.
The benefits are clear: near-instant finality for a seamless person expertise, horizontal scalability that grows with demand, and Transfer’s inherent security measures, that are essential when managing actual worth. For a Monetary Working System, the underlying chain should be each performant and safe. Sui gives that unparalleled basis, permitting us to construct a extra capital-efficient and safer system from the bottom up.
Are you able to element Momentum’s Three-Layer Structure?
ChefWEN: Completely. Consider it as a stack that bridges the previous world of finance with the brand new, making a self-reinforcing engine for progress.
- The Liquidity Layer: That is our core, powered by our capital-efficient DEX. It ensures that deep, sustainable liquidity is the bedrock of every little thing else.
- The Stack Layer: That is the place we turn out to be an ‘Working System.’ It contains our Treasury Instruments for protocols, MSafe for safe asset administration, and our Token Era Lab. This layer gives the important ‘apps’ and providers for others to construct and handle their monetary operations on Sui.
- The TradFi Bridge (Momentum X): That is our gateway. It’s the compliant, institutional-grade layer that permits conventional finance to hook up with our DeFi ecosystem, bringing in capital and legitimacy.
These layers aren’t remoted; they create a robust suggestions loop. Deep liquidity attracts protocols to our Stack, and a sturdy Stack attracts institutional customers by means of Momentum X, which in flip deepens liquidity. It’s a virtuous cycle.
Key Merchandise and Technique: Securing the Digital Treasury
Your platform emphasizes MSafe and Treasury Instruments. What particular ache factors are you fixing for decentralized initiatives as we speak?
ChefWEN: The most important ache level for decentralized initiatives as we speak is operational fragility. Many have treasuries value tens of millions however are managing them with multisig wallets which are clunky, lack visibility, and are susceptible to human error or assault. A contemporary enterprise wouldn’t settle for this stage of operational danger, and DeFi protocols shouldn’t must both.
Our Treasury Instruments remedy this by offering a devoted dashboard for on-chain treasury administration, assume refined yield methods, dependable fee streaming, and clear monetary reporting. MSafe, which we built-in with, gives a safer and user-friendly multisig commonplace. Collectively, they rework a challenge’s treasury from a static, dangerous asset right into a dynamic, productive, and safe monetary engine. We’re giving protocols the instruments that any mature enterprise would anticipate to handle and deploy capital successfully.
What’s the strategic objective of Momentum X, your institutional-focused layer?
ChefWEN: Momentum X exists to unravel the ‘final mile’ downside for institutional DeFi adoption. Establishments can’t function in a world of regulatory grey areas and key-man danger. They require compliance, readability, and safe custodial options earlier than deploying vital capital.
Momentum X will perform as the mandatory compliance and gateway layer, providing options like KYC/KYB integration, licensed custody companions, and a transparent authorized framework that permits conventional finance to take part in our deep liquidity swimming pools with confidence. It’s not a separate product; it’s the safe bridge that connects the large capital of TradFi to the innovation of DeFi on our platform, particularly on Sui.
Who do you view as your fundamental rivals, and what’s your “moat technique”?
ChefWEN: That’s an important query. On the floor, you would level to different DEXs on Sui and even cross-chain liquidity hubs. However our true competitors is the complete legacy monetary infrastructure and the fragmented state of DeFi itself.
Our moat isn’t only one characteristic; it’s the facility of our built-in ecosystem. A competitor can copy a DEX, but it surely’s extremely troublesome to copy a deeply built-in Liquidity Layer, a full-stack product suite (the Stack Layer), and a trusted institutional bridge (Momentum X) all working in concord. Our moat is the community impact between these layers. The extra protocols that use our Treasury Instruments, the deeper our liquidity turns into. The deeper our liquidity, the extra enticing we’re to establishments by way of Momentum X. This creates a formidable barrier to entry and a very sustainable aggressive benefit.
Ecosystem and Outlook: Metrics and the Future
Might you clarify the position of your Token Era Lab?
ChefWEN: The Token Era Lab is our quality-control and launchpad for the subsequent era of initiatives. The most important situation in token launches as we speak is the asymmetry of data and technical danger, which hurts each customers and critical builders.
Our Lab gives greater than only a technical launchpad. We provide advisory on tokenomics, safety opinions by means of our companions, and instant entry to deep, fair-launch liquidity on our DEX. We’re not only a faucet; we’re a filter and an accelerator, guaranteeing that high-quality initiatives have the very best begin inside the Sui and Momentum ecosystem. This maintains the standard of our Stack Layer.
What are crucial metrics that at present outline success for Momentum?
ChefWEN: Whereas Whole Worth Locked (TVL) and quantity are vital well being indicators, we’re centered on deeper, extra telling metrics that validate our FOS mannequin.
Firstly, protocol retention and utilization of our Stack Layer. What number of initiatives are actively utilizing our Treasury Instruments month-over-month? This alerts true product-market match past only a temporary token swap.
Secondly, the expansion of charge income from sources past easy swaps. This demonstrates the diversification and robustness of our ecosystem providers.
And thirdly, the amount of institutional circulation by means of Momentum X as soon as it’s stay. These metrics inform us we’re efficiently constructing a sustainable monetary ecosystem, not only a well-liked buying and selling venue.
What’s your final imaginative and prescient for tokenized finance?
ChefWEN: I consider all worth belongings, from actual property and equities to mental property, shall be tokenized and traded on chain. This isn’t nearly crypto natives; it’s a couple of world, liquid, and accessible monetary system that cuts out legacy inefficiencies.
Momentum’s position in that is to be the core infrastructure. We would be the platform the place these tokenized belongings are traded, managed, and built-in into advanced monetary merchandise. We’re constructing the system that makes the frictionless, world motion of worth a actuality.
What are the most important dangers and challenges you anticipate within the subsequent 12-18 months?
ChefWEN: We’re very clear-eyed in regards to the challenges. I’d categorize them into three areas:
- Regulatory Uncertainty: That is the biggest exterior danger. The evolving regulatory panorama throughout completely different jurisdictions might create headwinds, notably for our Momentum X bridge. Our technique is proactive engagement and constructing with compliance as a core characteristic, not an afterthought.
- Ecosystem Safety: As we develop, we turn out to be a bigger goal. The current exploit of a competitor on Sui was a stark reminder for the complete ecosystem. Our relentless concentrate on safety audits, like our partnership with Movebit, and constructing with Transfer’s safe-by-design ideas, is our main protection.
- Execution: The inner problem is all the time execution. Can we ship high-quality merchandise quick sufficient to keep up our lead? We mitigate this by fostering a robust engineering tradition and staying ruthlessly centered on our core roadmap. We see these not as insurmountable threats, however as challenges we’re strategically positioned to navigate and overcome.