In a strategic move that could foreshadow a resurgence of decentralized finance (DeFi), Monad, an Ethereum Virtual Machine (EVM) compatible layer-1 blockchain, has joined forces with Orderly Network, a decentralized exchange (DEX) infrastructure that spans multiple chains. The partnership, announced as Monad prepares to launch its testnet, aims to position both platforms to capitalize on what many hope will be a second DeFi summer.
Monad Testnet Launch: A Playground for Builders
The arrival of the Monad testnet on Wednesday marks a significant milestone for the project. As an EVM-compatible L1, Monad offers developers a fast and familiar environment to build and test decentralized applications (dApps). The testnet launch is expected to attract a flurry of activity, not least because of the tantalizing possibility of airdrops for early adopters and contributors.
EVM Compatibility: Lowering the Barrier to Entry
By opting for EVM compatibility, Monad aims to lower the barrier to entry for developers accustomed to building on Ethereum. This familiarity could prove crucial in attracting projects to the nascent L1, as teams can port over existing codebases and tooling with relative ease. The promise of a more scalable and cost-effective environment, combined with the allure of being part of a new ecosystem, could be a potent draw.
Orderly Network: A Multi-Chain Liquidity Backbone
Monad’s integration with Orderly Network is a key piece of the puzzle. Orderly’s raison d’être is to address the perennial problem of liquidity fragmentation in DeFi. By offering a shared order book that spans multiple blockchains, including heavyweights like Arbitrum, Optimism, and Polygon, as well as upstarts like Base and Mantle, Orderly aims to create a more unified and efficient trading environment.
“Orderly is an omni-chain trading infrastructure with a focus on solving for fragmented liquidity,” explained Arjun Arora, Chief Operating Officer at Orderly Network. “With more chains propping up day by day, liquidity continues to get fragmented across DeFi, TVL continues to get moved around.”
– Arjun Arora, COO Orderly Network
The partnership with Orderly means that Monad will launch with a ready-made liquidity infrastructure and an established roster of market makers. This includes notable names like Wintermute, Selini, and Riverside Trading, all of whom are among the 20 or so market makers already integrated with Orderly.
DeFi Summer 2.0: Regulatory Tailwinds and a Maturing Market
The timing of the Monad-Orderly tie-up is significant. Many in the industry are hoping for a repeat of the DeFi summer of 2020, which saw an explosion of activity and innovation in the decentralized finance space. That boom was catalyzed in part by Federal Reserve interest rate cuts in response to the Covid-19 pandemic.
Fast forward to 2025, and the market conditions appear ripe for another surge. The crypto-friendly policies of the Trump administration are expected to provide a regulatory tailwind, while the maturation of the DeFi space over the past five years means that the infrastructure and user experience are vastly improved compared to the early days.
Monad’s $225M Funding Round: A Vote of Confidence
Monad’s partnership with Orderly comes hot on the heels of a significant fundraising round. In April 2024, Monad Labs raised $225 million in a funding round led by Paradigm, one of the most prominent venture capital firms in the crypto space. This vote of confidence from a respected industry player suggests that Monad is well-positioned to make waves in the L1 arena.
- Fast EVM-compatible L1: Monad offers developers a familiar and efficient environment
- Testnet launch: The impending testnet release is expected to drive significant activity
- Partnership with Orderly Network: Integration with an established cross-chain DEX infrastructure
- Regulatory tailwinds: A crypto-friendly administration could catalyze a second DeFi summer
- Significant funding: A $225M raise led by Paradigm bolsters Monad’s position
As the crypto industry looks ahead to what could be a landmark summer for decentralized finance, the partnership between Monad and Orderly Network is one to watch. By combining the promise of a new EVM-compatible L1 with the established liquidity infrastructure of a cross-chain DEX, the two platforms have positioned themselves to ride the wave of DeFi innovation and activity that many are anticipating.
Whether DeFi Summer 2.0 will live up to the hype remains to be seen, but one thing is certain: with the launch of its testnet and its tie-up with Orderly, Monad is ready to hit the ground running. As developers start to explore the possibilities of this new environment, and as liquidity starts to flow through Orderly’s shared order book, the stage is set for an exciting new chapter in the story of decentralized finance.
