Mangata Finance, the Polkadot based DEX, is ready for launch on June 6th.
It recently had a successful crowdloan that closed in under an hour, earning it a spot on Polkadot’s Kusama innovation network. Over $2 million in value was committed through the crowdloan, a process that uses Polkadot (DOT) tokens to support a specific project in the Polkadot Slot Auction, for which participants will receive rewards from the projects .
The project also raised $4.2 million in equity, which came shortly after the launch of its first blockchain on the Kusama Network, taking the Polkadot startup’s valuation to $60 million. New investors such as Signum Capital, IVC, Figment, ZMT Capital, AngelDAO and Paribu Ventures joined returning investors Altonomy, Polychain and TRGC in this strategic round.
“Altonomy believes in Mangata’s efforts to connect large blockchains, improve security for merchants and help reduce fees by eliminating gas from the equation, which is why we have returned for a second round of funding,” said Ricky Li, Director of Altonomy.
In fact, Olaf Carlson-Wee, the founder and CEO of investment firm Polychain Capital, was the first to fund Mangata’s vision of efficient DEXes without MEVs.
Leveraging Polkadot Interoperability
Slovakia-based Mangata is both a blockchain and DEX that will be parachained into the Polkadot ecosystem. By choosing Polkadot for its multipurpose DEX, Mangata aims to leverage Polkadot’s core value proposition of interoperability.
Polkadot is a Layer 1 blockchain network designed to support various interconnected, application-specific chains called parachains. Each chain built on their network uses Parity Technologies’ modular Substrate framework, which allows developers to choose specific components that best fit their chain and optimize their chains for specific use cases
This entire ecosystem of parachains plugs into a single base platform called Relay Chain. This base platform is responsible for the security of the network’s parachains and contains Polkadot’s consensus and voting logic.
Mangata is a one-stop shop for trading Polkadot (DOT) assets easily and securely, while also serving as a bridge between Ethereum and Polkadot, allowing assets to be seamlessly migrated between the two ecosystems as needed.
It is actually the first parachain to create a specialized UI for trading ETH Polkadot. Besides connecting these two major blockchains, Magnata is connecting other popular Layer 1 blockchains; Cosmos, Solana and Avalanche.
Novel liquidity proof mechanism
Founded in 2020 by Peter Kris, who previously founded European Web3 studio Block Unison, and CTO Gleb Urvanov, a computer scientist, Mangata aims to solve some of the biggest insider trading and institutional adoption problems facing DeFi and the crypto market are facing big. Other obstacles to mainstream DEX adoption include complex structures, price oracle manipulation, and flash loan attacks.
With a team of 14 people that includes software engineers, product designers, blockchain experts and business strategists, Mangata believes it is uniquely positioned to achieve its goal of eliminating these issues.
To fuel DeFi and crypto adoption, Mangata will leverage its funding to offer low fixed fees per operation, capital efficiency through on-chain limit orders, and MEV prevention, while providing the first UI to trade ERC20 tokens with native Polkadot- to provide assets.
This community operated DEX is secured by its unique Proof-of-Liquidity mechanism that reuses liquidity to ensure chain security. This helps create deeper liquidity pools, increases capital efficiency and allows players to be double rewarded.
“Mangata’s unique Proof-of-Liquidity mechanism raises the bar for chain security and staking rewards, and our no-gas economy eliminates slow, expensive settlements prevalent on other blockchains. This latest round of funding will allow us to continue our mission of creating a better crypto market for everyone within the Polkadot ecosystem and beyond,” said CEO Kris.
Furthermore, the project deliberately does not support smart contracts, self-executing contracts written directly in lines of code, to further protect against exploitation by malicious actors or bots.
The first production-ready Layer 1 DEX blockchain also prevents dominant forms of price manipulation and maximum extractable value (MEV). While other blockchains are prone to frontrunning bots, Mangata DEX stops them at the consensus layer with a new block production method, Themis architecture, that makes frontrunning nearly impossible.
In addition to all these benefits, Mangata’s design eliminates gas from the swap equation entirely, while other blockchains like Ethereum charge extremely high gas fees and price out small users. This enables faster settlements without additional costs as well as new strategies such as dollar cost averaging.
Algorithmic Buy & Burn
The way the DEX is designed ensures fixed fees while offering better control over trading costs and more opportunities for arbitrage.
In addition to addressing DeFi’s limitations, Mangata has implemented a novel algorithmic buy-and-burn mechanism that will reflect the protocol’s success in the price of its native token MGX.
This mechanism works in such a way that 0.05% of the 0.3% commission charged by Mangata X is used for this algorithmic buying and burning. Meanwhile, 0.2% goes to liquidity providers as LP fees and 0.05% goes to the Treasury.
MGX is hard capped at 4 billion, and 1 billion MGX will be released right at launch to allow for high liquidity. Eighty percent of the MGX token supply is actually distributed to the community, of which 30% is earmarked for validation rewards and 37.5% for LP rewards.
Now, ahead of its launch, Mangata is collaborating with other DeFi protocols like Acala, Oak Network, Bifrost, and Moonriver to realize the cross-chain future and let tokens flow freely from one blockchain to another.
All in all, Magnata aims to create a quality trading system that will make early-stage Polkadot projects easier for the community to access.
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