The closing of a $4.2 million funding round from Mangata Finance marks the beginning of mainstream DEX adoption

Decentralized exchanges (DEXs) are one of the fastest growing application segments in the DeFi landscape. However, they have yet to see widespread adoption due to a variety of challenges that plague them, including complex user interfaces, escalating fees and slow billing, and front-running practices by arbitrageur bots.

This is starting to change with the emergence of platforms like Mangata Finance, creating a one-stop shop for all Polkadot and Ethereum-based assets, and providing a community-driven blockchain and DEX that solve DeFi’s biggest challenges.

Mangata Finance recently closed a $4.2 million funding round co-led by returning investors Altonomy, Polychain and TRGC. The funding round, which also included Signum Capital, Headline, Figment, ZMT Capital, Paribu Ventures, and AngelDao, aims to allow Mangata Finance to open the floodgates to profitable trading and investing in the DeFi world.

This funding round comes shortly after the launch of Mangata Finance’s first chain of apps on the Kusama network (Polkadot’s experimental network).

Mangata Finance, which currently has an equity value of US$60 million, was praised by participating investors including Ricky Li, Altonomy’s director, who said, “Altonomy believes in Mangata’s efforts to connect large blockchains to provide security for merchants and help reduce fees by eliminating gas from the business equation, which is why we have returned for the second round of funding.”

This news could not have come at a better time for Polkadot as its coveted parachain slot auction has raised $3.5 billion in DOT contributions from participants and is seeing increasing demand as newly opened bridges and long-awaited Protocol upgrades are delivered.

The success of Mangata Finance solidifies Polkadot’s status as a prime target for serious projects aiming to build scalable and powerful innovations in the DeFi space, recent studies have shown.

With this new cash injection, Mangata Finance wants to increase its speed and partner with Acala (Polkadot’s liquidity center) and Oak Network.

Overall, this funding will be used to continue Mangata Finance’s mission of achieving capital efficiency and enabling equitable blockchain designs for a better DeFi (decentralized finance) market within the Polkadot ecosystem and beyond.

Safe and easy DEX trading

Founded in 2020 by Mangata Labs, Mangata Finance is a DEX that offers a category-defining blockchain architecture that guarantees low fixed trading fees, improves capital efficiency and prevents front-running problems and MEV (Maximum Exctractable Value).

Parachained on top of Polkadot, Mangata’s platform serves as a one-stop shop for trading Polkadot assets as well as a bridge between Polkadot and Ethereum.

However, unlike most blockchain ecosystems, Mangata Finance has a no-gas economy that completely eliminates the need to pay gas fees when trading Mangata Finance’s DEX.

In addition to their no-gas fee DEX, the platform also offers a revolutionary Proof-of-Liquidity consensus protocol, using a user’s stake as liquidity on Mangata’s DEX. This allows for deeper liquidity pools, increases capital efficiency, and double rewards stakers in the form of staking and trading rewards.

Solving MEV on DEXs

Most decentralized exchanges (DEXs) suffer from relatively low trading volume and high slippage due to lack of liquidity. This often leads to front-running or “maximum extractable value” (MEV) situations, where traders or miners with large order sizes can essentially “snip” the best prices before they are taken by other market participants. As a result, many small retailers have to pay inferior prices because they cannot compete with these larger suppliers.

In traditional finance, MEV practices can be compared to insider trading as the large traders with prior knowledge of order book movements can take advantage of these situations. However, with other DEXs, there is no easy way to stop MEV as the rules of other blockchains have no way to prevent it.

Mangata Finance’s solution to this problem is a new block production architecture called Themis. This new method changes the way blocks are created and effectively prevents nodes from censoring or changing the order of transactions.

This allows Mangata Finance to offer a level playing field to all traders, regardless of their size or volume of orders.

Redefining DeFi

The $4.2 million investment in Mangata Finance is a vote of confidence not only in the project, but in the Polkadot ecosystem as a whole. Mangata Finance promises to create a sustainable DeFi industry where all participants can benefit from the ecosystem without worrying about skyrocketing gas fees or front-running miners or whales.

Going forward, Mangata Finance plans to use these funds to continue developing the platform and expanding its partnerships within the Polkadot ecosystem. With the support of experienced investors like Altonomy, Polychain and TRGC, Mangata Finance is poised to become one of the leading DeFi platforms on Polkadot and across the DeFi landscape.

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