Mento Protocol Brings Onchain FX Infrastructure to Polygon Chain

Mento Protocol has launched on Polygon Chain, bringing its decentralized FX infrastructure to the network. The launch includes a USDm/EURm liquidity pool backed by Capa as a day-one liquidity partner and Schuman Financial's EURØP as a reserve asset for EURm.

The initial pair is EUR/USD, which accounts for roughly $2T USD of the $9.5T USD traded daily across global FX markets.

According to Mento Labs' CEO Bogdan-Radu Dumitru, 'Mento's mission is to make non-USD stablecoins usable across markets by providing the FX infrastructure that lets them move reliably.'

The Polygon Open Money Stack has been designed to support this kind of infrastructure, and Marc Boiron, CEO of Polygon Labs, notes that 'Non-USD stablecoin markets don't grow on infrastructure alone, they need deep liquidity.' Capa's Head of Ecosystems Jonathan Herrera adds that 'onchain FX for non-dollar currencies is where real cross-border value moves next.'

The Mento Protocol uses a Fixed Price Market Maker, which references real-world FX rates through trusted price feed oracles to provide predictable execution and programmable liquidity.