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Analysis

Mangata Finance valued at $13 million

Mangata Finance, the decentralized exchange (DEX) on Kusama, was valued at $13 million following the conclusion of a seed event. Of particular note is the timing, as the funding comes as the cryptocurrency market continues to decline sharply.

“The whole team is very proud of the result. Against all the expectations of the bear market, we have shown that hard work and relentless attention to capital efficiency and equity pay off,” said Peter Kris, founder of Mangata Finance.

The objective

The goal is ambitious, but so far elusive in the world of decentralized exchanges: to propose a solution where all the channels are offered on a single platform. Bear markets are the time to build – many of the current top-notch projects were assembled during the last bear run, and there is no reason to believe that this time will be different.

A falling market is not fun, but it offers the advantage of being able to focus more on utility and a roadmap rather than price monitoring, when only great projects tend to stay.

“We have laid the foundations for a DEX that serves the entire Dotsama ecosystem. We will bring liquidity and token velocity to all Web3 projects on a single platform. The Mangata X community now has more than 1,000 members. You are all now co-owners of Mangata X,” Kris continued.

Detail

More than 12,000 KSM contributed to the start-up of Mangata X, bringing the total value locked in the protocol to $1.25 million and $3.27 million in market capitalization.

The Mangata team estimates the initial cash extraction rush to offer an APR of 78%. This rate is expected to increase further to 129% APR once the protocol activates its “Stake Once, Earn Twice” liquidity proof mechanism. In the long term, the statistics of the token will issue 67.5% of the maximum supply for the provision of liquidity.

These are important numbers, and ones that investors will be more wary of given some of the death spirals experienced by various crypto projects over the past few months. While it is still too early to make a judgment on this project, the technical aspects are interesting, although investors should be careful here.

As a next-generation DEX, Mangata is a Substrate-based Layer 1 application chain, and it is not bound by legacy restrictions. Parity Technologies’ modular Substrate framework allows developers to select particular components that are more suitable for their specific chain. That is why Mangata claims to be able to customize the chain’s rules to optimize the entire ecosystem, theoretically improving the efficiency and equity of capital.

Miner-Extractable Value (MEV)

Miner-Extractable Value (MEV) is a dynamic in which blockchain miners extract profits at the expense of users by arbitrarily reordering, including or excluding transactions within a block. Because 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 that the project will be able to prevent insider trading from MEV and prevent this censorship or affect the order of transactions by miners.

Additional features

The project should also open channels to parachains like Karura, Bifrost, Turing, Statemine and many others.

As for the Mangata X community, it will be involved in all these steps through user experience interviews and community calls that allow users to have a say in the prioritization of features, with the goal of true decentralization.

Mangata is also working to fill 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 rather new consensual liquidity proof.

In addition to solving the main insider trading problems, Mangata focuses on the adoption of DEX by consumer and institutional finance, which requires reliable and transparent rules and offers open access to DeFi to the public.

A summary of the general goals can be seen in the network property. The distribution of 19% of the MGX offer is much higher than the usual 1-2%, allowing the ecosystem to have a real stake in the Kusama DEX.

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