Polygon Labs Partners with Manifold Trading to Boost DeFi Liquidity Standards

November 04, 2025
Polygon Labs has teamed up with Manifold Trading to introduce institutional-grade liquidity management to decentralized finance, focusing on tighter spreads and improved execution standards across the Polygon ecosystem.

Polygon Labs has partnered with Manifold Trading to bring institutional-level execution and liquidity management to decentralized finance, announced in a press release. The collaboration aims to enhance liquidity quality, tighten spreads, and improve market structure across the Polygon DeFi ecosystem.

Manifold will deploy quantitative market-making and on-chain arbitrage strategies across major decentralized exchanges on Polygon. These strategies are designed to improve price efficiency, minimize dislocations across venues, and ensure continuous two-sided liquidity for traders and institutional participants.

The firm will also work with emerging DeFi protocols to ensure new markets launch with sufficient liquidity depth. This step supports Polygon’s broader effort to modernize its DeFi infrastructure, complementing initiatives like AggLayer for cross-chain liquidity and the upcoming gigagas update, which targets transaction finality under five seconds.

According to Polygon Labs, the integration of professional-grade liquidity management is expected to make DeFi trading conditions more stable and cost-efficient, aligning them more closely with traditional financial markets.

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