Polygon Labs is partnering with Manifold Trading, an institutional-grade quantitative firm, to enhance liquidity and execution quality across its decentralized finance (DeFi) ecosystem. The collaboration aims to bring professional, data-driven market-making infrastructure to the Polygon network as institutional interest in DeFi continues to rise.
Announced on Tuesday, the partnership will enable Polygon’s DeFi ecosystem to leverage Manifold’s capabilities in tighter spreads, algorithmic liquidity management, and consistent onchain pricing features typically found in traditional financial markets.
Access to deep, stable liquidity is foundational to any mature financial system. Manifold’s ability to actively manage spreads, size, and responsiveness across multiple venues makes them an ideal ecosystem partner as we continue scaling institutional-grade DeFi across the Polygon ecosystem.
Institutional-grade execution and liquidity depth
Manifold’s deployment of quantitative market-making and onchain arbitrage strategies will go live across leading Polygon decentralized exchanges, improving price efficiency and reducing cross-venue dislocations.
The firm’s trading network will also provide continuous two-sided liquidity, a key factor in supporting institutional-grade participation.
The move aligns with Polygon’s broader infrastructure upgrades, including AggLayer, a decentralized cross-network protocol designed to unify liquidity across chains.
This partnership reflects Polygon’s vision to build the rails of a decentralized financial system where liquidity, transparency, and performance can match or exceed traditional markets.
Addressing liquidity fragmentation
Liquidity fragmentation has long been a bottleneck for DeFi adoption. With institutional players demanding predictable and fair execution, Polygon’s collaboration with Manifold aims to deliver professional liquidity management to its growing market.
Polygon’s Rio upgrade recently enhanced network speed, efficiency, and cost, while Manifold’s technology brings depth and predictability for fintechs, neobanks, and other institutional participants.
This integration could also strengthen use cases such as onchain payments and real-world asset trading, which rely on consistent liquidity and execution reliability.