Mangata Finance, Kusama’s decentralized exchange (DEX), was valued at $13 million after the completion of a bootstrapping event. It is a time of particular interest as funding comes in as the cryptocurrency market continues its steep downward trend. “The whole team is very proud of the result. Against all bear market odds, we have shown that hard work and a relentless focus on capital efficiency and fairness pays off,” said Peter Kris, founder of Mangata Finance.
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The goal
The goal is ambitious, but so far elusive in the world of decentralized exchanges: to offer a solution where all networks are offered on a single platform. Bear markets are the time to build – many of today’s top-tier projects were assembled during the last bearish run, and there’s no reason to believe this time will be any different. A downtrend market is no fun, but it offers the benefit of being able to focus more on utility and roadmap rather than watching prices, while only formidable designs tend to stick around. “We have laid the groundwork for a DEX that serves the entire Dotsama ecosystem. We will bring liquidity and token speed to all Web3 projects on a single platform. The Mangata X community now has over 1,000 members. All of you are now co-owners of Mangata X,” continued Kris.
Details
More than 12,000 KSM were contributed to the Mangata X bootstrap, bringing the total value locked in the protocol to $1.25 million and $3.27 million in market value. The Mangata team estimates that the initial liquidity mining run will offer an APR of 78%. This rate is expected to increase further to up to 129% APR as the protocol activates its “Stake Once, Earn Twice” liquidity proof mechanism. In the long term, tokenomics will issue 67.5% of the maximum supply for liquidity provision. Those are big numbers, and the ones investors will be most wary of right now, given some of the death spirals experienced by various crypto projects in recent months. While it is still too early to judge this project, the technical aspects are interesting, even if investors need to be cautious here. As a next-gen DEX, Mangata is a Tier 1 application chain built on Substrate and is not bound by legacy constraints. Parity Technologies’ modular Substrate framework allows developers to select specific components that best fit their specific application chain. That’s why Mangata claims it can customize the rules of the chain to optimize the entire ecosystem, theoretically improving capital efficiency and fairness.
Miner-Extractable Value
Miner-Extractable Value (MEV) is a dynamic where blockchain miners extract profits at the expense of users by arbitrarily reordering, including or excluding transactions within a block. As miners can determine the order of transactions processed on the blockchain, this can obviously be exploited. Many projects have tried to solve this problem. Mangata, if successful, hopes the project could prevent MEV’s use of inside information and inhibit that censorship or affect the order of miners’ transactions.
additional features
The project is also slated to open channels for parachains like Karura, Bifrost, Turing, Statemine and many others. Regarding the Mangata X community, they will be involved in all these steps through user experience interviews and community calls that allow users to have a say in prioritizing features, with genuine decentralization as a goal. Mangata is also striving to bridge the gap as a cross-chain trading platform, allowing Ethereum ERC20 tokens to be traded with native Polkadot assets. In addition, the project seeks to improve efficiency through a very innovative Consensus Proof of Liquidity. In addition to solving key insider trading problems, Mangata is focused on the adoption of DEX by traditional and institutional finance, which requires reliable and transparent rules and brings open access to DeFi for people. A summary of the general objectives can be seen in the network property. The distribution of 19% of the MGX supply is much higher than the usual 1-2%, allowing the ecosystem to have a genuine stake in the Kusama DEX.
