What is Mango Markets (MNGO)? Complete set of MNGO Token

Hi guys! As you all know, the DeFi ecosystem on Solana is developing very well, but I still see some pieces missing including Margin Trading, Derivatives, Synthetic Assets,…

Therefore, today I will introduce to you a Margin Trading project operating on the Solana platform, which is Mango Markets.

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 It 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 near-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 bronze top 1 in the Serum DeFi Hackathon and received a prize pool of 50,000 USDC-SPL.

For those of you who do not know, the Serum DeFi Hackathon is an event organized by the Solana Foundation to attract developers to develop products in the ecosystem. DeFi on Solana.

Highlights of Mango Markets (MNGO)

The most outstanding feature of Mango Markets I see is probably this project Margin Trading first on the Solana platform thus getting the advantage of “First Mover”.

I will compare with similar projects on Ethereum dYdX – also a decentralized trading platform to highlight the uniqueness of Mango.

Regarding leverage, Both dYdX and Mango Markets projects offer maximum leverage with Margin Trading of 5x (perpetuals array on dYdX also allows 10x leverage). So, compared to the leverage level of the 2 projects, I think they’re even.

Regarding the number of trading pairs, Although it has been around for a long time, dYdX temporarily only has 3 trading pairs, all of which are ETH with one Stablecoin, and Mango Markets currently allows trading of 2 trading pairs, BTC – USDT and ETH – USDT. However, Mango Markets has just launched recently and the ability to add new trading pairs on the platform is quite possible.

Regarding liquidity, This is one of the issues you are most concerned about when doing Margin trading, both platforms trade according to the Order book matching method, however, I see that the 2 margin trading pairs on the dYdX platform have a high volume. liquidity is quite low and spreads are quite high.

The liquidity of the two largest trading pairs on margin trading of dYdX is only about 1.5 million USD.

Spread is also quite high up to 0.47%, with 5x margin trading, the brother who just placed an order has lost 2.5%, not to mention that anyone who places a large order will still face slippage. It will be very difficult in scalping.

As for Mango Markets, the project has just been deployed, so the current liquidity is also quite low, perhaps more time is needed to monitor.

But the more prominent feature of Mango in my opinion is that the project will integrate with the liquidity of Serum DEX, so the price slippage will be lower than dYdX.

Regarding transaction speed, It is certain that Mango will have a faster transaction speed because it is built on the Solana platform, and dYdX is only built on Ethereum, but when it comes to margin trading, speed is an important factor.

In summary, in my opinion:

• Mango has the same leverage and temporary trading pairs as dYdX.
• In terms of liquidity, Mango seems to be slightly better than dYdX because of its integration with Serum DEX.
• In terms of speed and transaction fees, the victory automatically belongs to Mango, unless dYdX has an integrated Layer 2 solution.

Learn more about What is Layer 2? to understand Ethereum & dYdX problems and Layer 2 solutions.

How Mango Markets works

Order book and Fees

Mango Markets allows users to trade with up to 5x leverage, with Limit Orders on 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 Ratio

Collateral Ratio is the ratio between the value of a user’s deposit and position divided by the value of their loan.

Traders must maintain this ratio at 110% or they will be liquidated.

Interest rates

The higher the leverage, the higher the interest rate that lenders on the Mango platform will receive. Lending rate is a function of utilization rate (the number of tokens being borrowed divided by the amount deposited into the platform) illustrated as shown below:

As can be seen, the interest rate increases sharply if the utilization rate is above 70%.

Risk

Mango markets does not charge users fees for trading, so there is no insurance fund. What risks does this condition pose?

When traders use too much leverage in the context of strong market swings and the account falls below the collateral ratio to maintain the position (110%), and it will be worse if this number falls below 100% (ie. is more debt than your account). At that time, lenders will have to share this loss with traders who “burn” their accounts.

There is also the risk of smart contracts, which needs special attention because of the projects involved Lending very often become the target of hackers with attacks flash loans attackand one point you should note is that the project has not yet been audited.

Detailed information about MNGO token

Key Metrics MNGO

• Token Name: Mango Market.
• Ticker: MNGO.
• Blockchain: Solana.
• Token Standard: SPL.
• Contract: Updating…
• Token Type: Utility, Governance.
• Total Supply: 10,000,000,000 MNGO.
• Circulating Supply: 1,000,000,000 MNGO.

MNGO Token Allocation

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MNGO Token Sale

The project does not hold Private Sale.

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

• In the first 24 hours, you can arbitrarily deposit and withdraw. The price of MNGO will fluctuate.
• In the 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.

MNGO Token Release Schedule

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MNGO Token Use Case

MNGOs will be used to:

• Administration.
• Compensation for Lenders if there is a loss (this fund is taken from the Insurance Fund).
• Liquid Boostrap.

How to earn and own MNGO Token

On August 10, 2021, the project opened for sale MNGO, you can deposit money to buy. Or can buy on the floor later.

Storage wallet & exchange MNGO Token

Instructions for storing MNGO on Techtipsnreview Wallet

MNGO is a token of SPL, so it will be stored on Techtipsnreview Wallet. Details will be updated later.

Instructions for trading MNGO on Techtipsnreview Exchange

MNGO is a token of SPL, so it will be stored on Techtipsnreview Wallet and Techtipsnreview Exchange. Details will be updated later.

The potential of Mango Markets

Margin Trading is a very potential segment on DeFi, you can imagine it simply like this: All DEX platforms have a 24-hour trading volume of about $6.7 billion, this figure compares to Binance exchange CEX is too small as Binance Spot trading with 24h vol has reached 22.3 billion USD. Thus, with the current trend of DeFi being the future, the potential of Margin Trading is huge.

Serum DEX currently has a 24-hour trading volume of $22.2 million. Imagine if one day, Mango would support the leverage on the entire liquidity of Serum DEX, what would it be like?

Currently the problem with Margin Trading platforms on Ethereum in my opinion is liquidity and transaction speed.

• Transaction speed needs to be improved by Layer 2 solutions or developing the platform to another chain.
• As for liquidity, I highly appreciate Solana’s DeFi ecosystem that now projects work together very closely and take advantage of each other’s liquidity to complement each other.

However, there are a few things that make me wonder about the project as follows:

• The firstbecause Mango does not charge fees when traders trade and the interest rate mechanism will be divided equally to lenders or will be reallocated to the project, this issue will be quite important because when the project launches the token, I hope would be a utility token rather than a governance token.
• Second, The risk that you as lenders may also lose money due to the mechanism I explained above.
• Tuesday, Looking at the project’s roadmap, I haven’t seen anything special yet, just adding trading pairs, improving user-interface, removing borrow-limit,… there’s really nothing more groundbreaking, I’ll expect team will further develop the derivatives array as it has huge potential in DeFi.

Roadmap & Updates

Project team, investors & partners

Project team

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Investors

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Partner

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Similar projects

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Project website: Mango Markets

summary

Mango is a prominent Margin Trading platform in the Solana ecosystem and is a piece that I consider quite important in the ecosystem.

Although I personally still have a lot of doubts about the growth potential of the project, the fact that Mango has reached the Top 1 in the Serum DeFi Hackathon has at least proved its stand out among the competitors.

What do you think about Mango and the potential of the project, please comment below to share your opinions. And one more thing, guys, try to experience Margin Trading on Mango, maybe when the token is launched, there will be a big Airdrop?

Remember this: “Always skin to the game”!

And don’t forget to follow the channel right away Techtipsnreview Insights News To get the fastest updates on all outstanding information and events about Mango Markets & MNGO coins and other projects in Crypto!