Mango protocol

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Discover Mango protocol's fundamentals and latest news.

This content was generated by Whalee (BETA), an AI crypto assitant that analyses cryptocurrencies. Informations can be incomplete and/or erroneous. Please always double check and DYOR.

What is Mango protocol?

Mango Markets is a decentralized cross-trading platform built on the Solana blockchain. It offers low-latency and low-transaction-fee trading, allowing users to manage risk through cross-trading and leveraging up to 10x for perpetual futures markets. The native token, MNGO, is a governance token, enabling holders to participate in decision-making and shaping the platform's future. Mango Markets combines centralized and decentralized trading features, providing a single venue for lending, borrowing, and swapping cryptocurrencies.

How is Mango protocol used?

The Mango protocol (MNGO) is a decentralized exchange (DEX) built on the Solana blockchain. It offers a comprehensive platform for users to engage in various cryptocurrency activities, including lending, borrowing, swapping, and leverage trading. The protocol utilizes a powerful risk engine and allows for cross-margin trading with up to 5x leverage, making it a versatile and attractive option for traders.

Key Features and Uses
  • Governance: MNGO tokens are used for governance decisions, enabling holders to participate in the decision-making process for the platform.
  • Rewards: MNGO tokens can be used to earn additional rewards within the platform, incentivizing users to engage with the ecosystem.
  • Fees: MNGO tokens are used to pay fees for various transactions and activities on the platform.
  • Leverage Trading: Mango Markets allows users to leverage trade with up to 5x leverage, providing opportunities for higher returns.
  • Cross-Margin Trading: The platform enables cross-margin trades between different crypto assets as collateral, increasing flexibility and options for traders.
  • Decentralized and Non-Custodial: Mango Markets operates in a decentralized and non-custodial manner, ensuring that users maintain full control over their assets.
  • Open Source: The platform is open source, promoting transparency and allowing developers to contribute to its growth and improvement.
Technical Integration

Mango Markets provides various ways for developers to integrate their systems with the platform. This includes using REST & WebSocket APIs, which are designed to be easy to integrate, as well as direct communication with the blockchain using open source wrappers for languages like TypeScript, Python, and .NET.

Community Engagement

The Mango DAO frequently sponsors grants for developers to extend, integrate with, or test the project. The community is encouraged to participate in biweekly developer calls and contribute to hackathons, fostering a collaborative environment for growth and innovation.

Overall, the Mango protocol offers a robust and feature-rich platform for cryptocurrency traders and developers, providing a range of tools and opportunities for engagement and growth.

How do I store Mango protocol?

To store Mango protocol (MNGO) tokens, you can use the Bit2Me Wallet, which is a multi-currency wallet that supports both cryptocurrencies and traditional currencies. This wallet allows you to manage multiple currencies from the same place, create as many wallets as you need, and offers features like buying, selling, exchanging, and storing MNGO tokens securely.

How to buy Mango protocol?

To buy Mango protocol (MNGO) tokens, you can follow these steps:

Buying on a Centralized Exchange (CEX)
  1. Choose a Reliable CEX: Select a trustworthy centralized exchange that supports Mango Markets (MNGO) purchases. Consider factors like ease of use, fee structure, and supported payment methods.
  2. Create an Account: Register on the chosen exchange, enabling 2FA and completing KYC verification if required.
  3. Add a Payment Method: Set up a payment method, such as a credit/debit card or bank account, following the exchange's instructions.
  4. Buy MNGO: Use fiat currency to buy MNGO directly if supported, or first purchase a popular cryptocurrency like USDT and then exchange it for MNGO.
Buying via a Crypto Wallet
  1. Select a Wallet: Choose a reliable crypto wallet that supports Mango Markets (MNGO).
  2. Download and Set Up: Download the wallet app and create a new wallet address or import an existing one. Keep your seed phrase secure.
  3. Buy Base Currency: Purchase a base currency like USDT or ETH using a supported payment method.
  4. Swap for MNGO: Exchange the base currency for MNGO through your wallet or on a decentralized exchange.
Buying on a Decentralized Exchange (DEX)
  1. Choose a DEX: Select a decentralized exchange that supports Mango Markets (MNGO).
  2. Buy Base Currency: Purchase the base currency (e.g., SOL) from a centralized exchange.
  3. Transfer to Wallet: Send the base currency to your web3 wallet.
  4. Connect Wallet to DEX: Connect your wallet to the DEX.
  5. Swap for MNGO: Trade your base currency for MNGO on the DEX.

Remember to check fees, slippage, and transaction requirements before making a purchase. Additionally, ensure you are using a reliable and secure wallet and exchange to protect your assets.

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History of Mango protocol

The Mango Markets protocol, represented by its native token MNGO, has a history that spans several years. Mango Markets was founded in March 2021 by Daffy Durairaj and Maximilian Schneider, who initially developed a command line margin trading mechanism on the Solana blockchain. This innovative project aimed to merge the liquidity and ease of use of centralized finance (CeFi) with the permissionless innovation of decentralized finance (DeFi) at a lower cost.

Mango Markets quickly gained popularity due to its unique offerings, including low latency and low transaction fees. The platform allowed users to access derivatives markets, lending, leverage, and liquidity on the Solana blockchain, making it an attractive option for investors seeking to diversify their portfolios.

In 2022, Mango Markets faced a significant challenge when a malicious trader, Avraham Eisenberg, exploited the platform's price oracle to artificially inflate the price of MNGO tokens. This manipulation allowed Eisenberg to withdraw over $110 million from the platform. The incident highlighted the importance of robust security measures and the potential vulnerabilities of decentralized exchanges.

Despite this setback, Mango Markets continued to evolve and improve. The platform's governance structure, known as the Mango DAO, allowed token holders to participate in decision-making processes and vote on proposals for the protocol's development. This decentralized governance model ensured that the project remained transparent and community-driven.

Mango Markets also continued to expand its services, offering lending tools, margin trading opportunities, and perpetual futures contracts on popular trading pairs. The platform utilized Serum DEX to provide liquidity to spot and margin markets, and its own order book for perpetual futures trading.

Throughout its history, Mango Markets has been committed to its vision of providing a decentralized, low-cost, and high-speed trading experience. Despite facing challenges, the project has continued to grow and innovate, solidifying its position as a prominent player in the decentralized finance space.

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How Mango protocol works

The Mango Markets protocol, powered by the MNGO token, is a decentralized finance (DeFi) platform built on the Solana blockchain. It offers a comprehensive suite of services, including spot margin trading, perpetual futures, and lending, all designed to provide users with a seamless and cost-effective trading experience.

Key Components
  1. Solana Blockchain: Mango Markets leverages Solana's high-speed and low-cost features to ensure fast transaction execution and minimal fees. This integration allows Mango to compete with traditional financial exchanges while maintaining its decentralized nature.

  2. Openbook DEX: For spot margin trading, Mango utilizes the Openbook DEX, which provides a permissionless and transparent trading environment. This allows users to trade with up to 5x leverage.

  3. Perpetual Futures: Mango operates its own order book for perpetual futures, offering users the ability to trade with up to 10x leverage.

  1. Mango Token (MNGO): The MNGO token serves as a governance token, granting holders the power to propose and vote on changes to the platform through a decentralized autonomous organization (DAO). This ensures that the platform evolves in alignment with the community's interests and needs.

  2. Cross-Margin Trading: Mango allows cross-margin trades between different crypto assets as collateral, enabling users to manage risk and optimize their trading strategies.

  3. Oracle Integration: Mango uses oracles to determine the prices of crypto assets. These oracles aggregate price feeds from multiple exchanges to provide a reliable and accurate price for borrowing and lending purposes.

Trading Experience

Mango Markets offers a user-friendly interface designed to cater to diverse trading strategies. The platform's emphasis on low latency, minimal transaction costs, and full decentralization makes it an attractive option for traders seeking a seamless and cost-effective experience.

Governance and Development

The Mango DAO ensures that the platform is governed by its community, with MNGO token holders having a direct say in the platform's development. The platform is open-source, inviting developers to contribute and enhance the ecosystem. Mango frequently sponsors grants for developers to extend, integrate with, or improve the project, fostering a collaborative environment for growth and innovation.

Security and Transparency

Mango Markets prioritizes transparency and security, with its open-source nature allowing for continuous scrutiny and improvement. The platform's use of oracles and decentralized governance ensures that users retain full control over their assets, minimizing the risk of manipulation or exploitation.

Overall, Mango Markets provides a comprehensive DeFi platform that combines the benefits of decentralized finance with the usability of traditional financial exchanges, making it an attractive option for traders and investors alike.

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Mango protocol's strengths

The Mango protocol's token, MNGO, has several strengths:

  1. Governance Power: MNGO serves as a governance token, granting collective power to token holders to upgrade the protocol through the decentralized autonomous organization (DAO) framework. This ensures that the platform evolves in alignment with the community's interests and needs.

  2. Low Latency and Transaction Costs: Mango leverages the high-speed and low-cost features of the Solana blockchain, providing a seamless trading experience with real-time trade execution and reduced transaction fees. This integration makes Mango competitive with traditional financial exchanges.

  3. Comprehensive DeFi Platform: Mango offers a variety of DeFi activities, including spot margin trading, borrow/lend, and perpetual futures. These features cater to diverse trading strategies, providing users with a comprehensive DeFi platform.

  1. Decentralized and Non-Custodial: Mango ensures users retain full control over their assets, adhering to non-custodial principles. This openness invites a plethora of skilled developers to enhance, innovate, and fortify the ecosystem.

  2. Unique Tokenomics: Mango's tokenomics are distinct in that all team tokens were unlocked from day one, which means that the circulating market cap already includes all team and VC tokens. This transparency makes it easier to understand the token's supply and demand dynamics compared to other projects with locked tokens.

  3. Potential for Value Accrual: The DAO is intended to implement value accrual mechanisms such as buybacks and staking rewards, which could benefit token holders in the future.

These strengths position Mango as a progressive and user-centric DeFi platform, combining the benefits of centralized and decentralized finance.

Mango protocol's risks

Mango protocol (MNGO) faces several financial risks. One significant risk is market manipulation, as demonstrated by the Mango Markets exploit in which a malicious trader artificially inflated the price of MNGO tokens and withdrew over $116 million from the platform. This exploit highlights the vulnerability of DeFi protocols to price manipulation attacks, particularly when they rely on oracles that can be influenced by limited trading activity.

Another risk is the lack of an insurance fund, which can lead to socialized losses among lenders when a margin account falls below the required maintenance collateral ratio. This can create a significant risk to the ecosystem, especially when combined with the potential for market manipulation.

Additionally, Mango Markets' zero-fee structure can make it difficult to maintain liquidity and stability, as there is no revenue stream to support the platform's operations. This can further exacerbate the risks associated with market manipulation and liquidity crises.

Furthermore, the protocol's reliance on oracles to determine asset prices can be problematic, as these oracles may not always accurately reflect market conditions. This can lead to incorrect pricing and further instability in the system.

Overall, Mango protocol (MNGO) is exposed to a range of financial risks, including market manipulation, liquidity crises, and the limitations of its oracle-based pricing system.

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Did Mango protocol raise funds?

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Mango protocol’s team

  • John Kramer and Max Schneider: Senior contributors to the Mango DAO, accused of buying back MNGO tokens at an inflated price, which they deny, stating that the accusations are from jealous rivals.

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