Mango Markets is built on Solana blockchain and utilizes Serum DEX for spot margin trading while perpetual futures are traded on Mango’s own orderbook. Mango is governed by MNGO holders via the Mango DAO.

What Is Mango Markets

Mango Markets is a decentralized platform that allows cross-margin trading using up to 5x leverage on Solana’s Blockchain platform. In addition, Mango Markets also integrates with the order book system of Serum DEX.

Mango Markets also allows users to deposit their tokens into the platform, with the aim of giving traders a margin loan to trade on the basis of the extremely fast transactions and almost zero gas fees of Blockchain Solana. Furthermore, users can deposit SRM tokens into the shared pool to reduce transaction fees.

The project recently achieved a co-top 1 in the Serum DeFi Hackathon and received a prize pool of 50,000 USDC-SPL.

https://twitter.com/solana/status/1372994246354034690?s=20&t=RI-bpxlY_H14n0sELHM4Tg

Outstanding Features

Current on-chain lending protocols (e.g. Aave, Compound) provide up to 2x leverage for margin traders, but this comes with severe downsides.

For one, Ethereum gas prices are prohibitive for the majority of traders.

Secondly, the margin trading can only be done with market orders or swaps — not limit orders.

This makes them completely useless for market makers.

Centralized trading platforms can provide leverage similar to Mango Markets, but they have opaque rules and ultimately take custody of traders’ funds.

This creates extra security risks and the trader is ultimately at the discretion of the exchange on the availability of his funds.

What is the unique selling point?

The goal of Mango Markets is to create a trader and maker-friendly decentralized trading platform.

Initial core features will be fully on-chain margin trading on limit order books as well as perpetual futures, which are the main drivers of centralized exchange revenue.

Moving those to Defi is an essential step for money legos to overcome the CeFi platforms. Building on Ethereum would hinder the team from implementing the best possible user experience, the team went with Solana instead.

Mango Markets is following other influential players in the field with their choice of the platform here and is excited to pioneer the Solana ecosystem together with everyone that is already building on it.

Order book and Fees

Mango Markets allows users to trade with up to 5x leverage, with Limit Orders on the Serum DEX. Mango users earn interest on both deposit and position for more profit, so you can earn compound interest on your margin position.

You can save a substantial fee by keeping SRM in your trading wallet; The more SRM you hold, the lower the transaction fee and moreover receive the transaction fee (because you have to send SRM into the shared pool).

Collateral Requirements

The collateral ratio is the value of the user’s deposits and positions divided by the value of their loans.

For the initial set of markets, Mango will require an initial collateral ratio of 120%, and a maintenance collateral ratio of 110%.

If the user’s collateral ratio drops below 110%, the account will be liquidated and the user will lose the entire account.

The value of the account will be calculated using a moving average of centralized exchange price feeds, provided by a decentralized oracle.

Liquidation Process

Accounts must maintain a minimum 110% collateral ratio.

If an account falls below the 110% threshold, a liquidator absorbs your position and becomes the new account owner.

Anyone can run a liquidator with the opportunity to make a profit;

Mango will open-source liquidator bot soon, but they encourage others to build their versions.

Lenders, Borrowers and Liquidators

The lending pools work similarly to the lending pools on Aave.

With the big difference that users will earn interest on both their deposits as well as their positions (so you may be earning net interest on your margin position!).

The interest rate is a function of the utilization ratio: total borrowed by all users divided by total deposits of all users.

The interest rate will increase slowly approaching a utilization ratio of 70% but will increase rapidly above that to encourage the market to deposit more funds.

Decentralized,cross-margin trading: Up to 5x leverage · Lightning Speed · Near-zero fees.

1. Trade:
– Trade with up to 5x leverage, long or short, with limit orders on Serum DEX’s fully on-chain order book as a maker or taker while earning interest on deposits and margin positions.
2. Lend:
– Earn maximal interest on deposits, protect against inflation, and utilize idle investments. Always maintain custody of your funds.
3. Fees:
– No fees on interest. The only fees you will pay are for trading on Serum DEX. Contribute your SRM into our pool to reduce the fees for everyone. Let’s reach the top Serum fee tier together.

Insurance Fund

The Mango program has a $70m DAO controlled treasury for insurance on v3 deposits. When there are bankrupt accounts, the insurance fund will pay off losses incurred by token lenders or perps contract participants.

Roadmap

Updating.

Technical Data

Token Metrics

• Token Name:  Mango Market.
• Ticker: MNGO
• Blockchain: Solana
• Token Standard: SPL
• Contract: MangoCzJ36AjZyKwVj3VnYU4GTonjfVEnJmvvWaxLac
• Token Type: Utility, Governance.
• Total Supply: 10,000,000,000 MNGO.
• Circulating Supply: Updating.

Token Allocation

Updating.

Token Sale

On August 10, 2021, Mango Markets held an MNGO sale to the community. Users access , deposit USDC with a time limit of 48 hours.

• First 24 hours, you can arbitrarily deposit and withdraw. The price of MNGO will fluctuate.
• Next 24 hours, Can only withdraw, cannot deposit. The price of MNGO during this time will only decrease gradually.

After 48 hours, you can receive MNGO depending on the system’s calculation.

Over a two-day sale period ending on August 11, buyers claimed 500M $MNGO tokens, in what the team called a “fair launch.” 

The entire $70M raised from the token launch will go to Mango DAO’s insurance fund to provide cushion for Mango Protocol lenders in the event of extreme volatility causing excess losses in the system, according to the protocol’s Litepaper.

Token Release Schedule

Updating.

Token Use Case

• MNGO is a governance token that allows the Mango DAO to create and vote on governance proposals contributing to the evolution of the Mango Markets protocol. 
• MNGO tokens are provided to liquidity providers in order to incentivize market maker participation.

Market and Community

Community

Backers

Team

Updating.

Partners

Updating.

Investors

Updating.

Conclusion

Mango Markets is an exciting new investment opportunity that is steadily growing in popularity. Moreover, with upgrades and improvements planned in the near future, it could rise in value soon too. However, there are two issues that should be weighed before investing large sums in MNGO.

• The first is that the company is new and thus only a small amount of data on Mango Markets is publicly available.
• The second is the lack of transparency surrounding the company, its formation, and how (and by whom) it was founded.

Until these questions are answered in a satisfactory manner, it is probably advisable to tread with at least a modicum of caution.

Find more information about:

Website: https://www.mango.markets/

Whitepaper: https://docs.mango.markets/

Twitter: https://twitter.com/mangomarkets

Discord: https://discord.com/invite/2uwjsBc5yw

If you have any questions, comments, suggestions, or ideas about the project, please email ventures@coincu.com.

DISCLAIMER: The Information on this website is provided as general market commentary, and does not constitute investment advice. We encourage you to do your own research before investing.

Issac

Coincu Ventures