Mangata Finance is ready for launch, the Polkadot-based DEX.
Recently, it had a successful crowdloan that was closed in just under an hour that secured it a slot on Polkadot’s innovation network Kusama. Crowdloan: This involves staking Polkadot tokens (DOT) to support specific projects in the Polkadot Lot Auction. The participants then receive rewards.
The project also raised $4.2 million in equity, which came shortly after the launch of its first blockchain on the Kusama network, which raised the Polkadot startup’s valuation to $60 million. This strategic round also saw new investors such as Signum Capital and IVC along with AngelDAO and ZMT Capital.
“Altonomy believes in Mangata’s efforts around connecting major blockchains, improving security for traders, and helping reduce fees by eliminating gas from the equation, which is why we returned for a second round of funding,”Ricky Li (Altonomy Director)
Olaf Carlson-Wee, the founder and CEO of investment firm Polychain Capital, was actually the first one to fund Mangata’s vision of efficient DEXes without MEV.
Leveraging Polkadot Interoperability
Mangata, a Slovakian blockchain-DEX company that is based in Slovakia, will connect as a Parachain to the Polkadot ecosystem. Mangata chose Polkadot because of its DEX that can be used for multiple purposes. This allows him to capitalize on the main value proposition Polkadot offers, interoperability.
Polkadot, a layer-1 blockchain network that supports parachains and interconnected chains with specific applications, is called. The Substrate modular framework from Parity Technologies allows each chain to be built in its network. It allows developers the ability to pick the most suitable components for their particular chain, and then optimize it for specific uses.
Relay Chain is the base platform that connects all of this parachain network. This base platform is responsible for providing security to the network’s parachains and contains Polkadot’s consensus and voting logic.
Mangata provides a single-stop shop for the safe and easy trading of Polkadot assets. It also acts as an intermediary between Ethereum and Polkadot, allowing assets to be easily moved between both ecosystems.
It is actually the first parachain to build a specialized ETH <> Polkadot trading UI. Magnata is able to connect these important blockchains as well as other layer 1 networks such Cosmos, Solana and Avalanche.
Unique Proof of Liquidity Mechanism
Mangata, founded by Peter Kris who was previously the founder of European web3 Studio Block Unison and Gleb Urvanov (a computer scientist), Mangata seeks to resolve the major problems DeFi and crypto markets face in the areas of institutional adoption and insider trading. Complex structure, manipulation of price and loan attacks, as well as complex structure are some other barriers that prevent mainstream DEX adoption.
Mangata has a 14-person team that includes product designers and software engineers as well as blockchain specialists, business strategists, and other experts. This makes Mangata uniquely equipped to achieve its mission of eliminating all these problems.
Mangata’s funding will allow for low fixed fees, capital efficiency through on-chain limit order, MEV prevention, and MEV prevention. It also provides the first UI that can trade ERC20 tokens in conjunction with Polkadot native assets.
The DEX’s unique Proof of Liquidity mechanism ensures that the community-driven DEX can be protected. This reuses liquidity to provide chain security. This creates deeper liquidity pools and increases capital efficiency. It also allows stakers the opportunity to get rewarded twice.
“Mangata’s unique Proof-of-Liquidity mechanism raises the bar on chain security and staking rewards, and our no-gas economy does away with slow, expensive settlements rampant on other blockchains. This latest round of funding will enable us to continue our mission to create a better crypto market for everybody within the Polkadot ecosystem and beyond,”Kris.
To further protect itself against exploitation by bots or malicious actors, smart contracts are not supported.
First production-ready Layer-1 DEX Blockchain also blocks dominant price manipulations and maximizes extractable value (MEV). Mangata DEX prevents frontrunning bots on other blockchains. This is thanks to a new block production technique, Themis architecture.
On top of all these benefits, Mangata’s design eliminates gas from the swaps equation entirely, while other blockchains like Ethereum charge extremely high gas fees, pricing out small users. This allows quicker settlements, at no extra cost, and also new strategies like dollar-costveraging.
Algorithmic buy & Burn
Designing the DEX ensures that fixed fees can be paid while allowing for greater trading control and more arbitrage possibilities.
Besides addressing the limitations of DeFi, Mangata has also 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 is based on the principle that 0.05% from 0.3% of Mangata X’s commission will be used to fund algorithmic buy-and-burn. In the meantime, 0.2% of the commission charged by Mangata X will be used to pay liquidity providers as fees for LP and 0.05% to fund the Treasury.
MGX has a hard cap of 4 billion. 1 billion MGX will also be available at launch to provide deep liquidity. Eighty percent of MGX tokens’ supply will actually be distributed to the community, out of which 30% is set aside for validation rewards, and 37.5% is for LP rewards.
Mangata will now partner with DeFi protocols such as Oak Network and Moonriver ahead of the launch. This partnership is to ensure that the cross-chain future happens and allows tokens to freely flow from any blockchain.
Magnata’s overall goal is to build a trading platform of high quality that makes it easy for communities to have access to the early stages of Polkadot initiatives.
