Mangata Finance’s Efficient, MEV-Free DEX Based on Polkadot to Launch on June 6

Wanda FinancialThe Polkadot-based DEX will launch on June 6.

It recently had a successful crowdlending that closed in less than an hour, securing its place on Polkadot’s innovative network, Kusama. Over $2 million in value was staked through crowdsale, a process of staking Polkadot (DOT) tokens to support a specific project in a Polkadot Slot Auction, and in return, participants received rewards from the project.

The project also raised $4.2 million in equity, shortly after launching its first blockchain on the Kusama network, which boosted the Polkadot startup’s valuation to $60 million. New investors including Signum Capital, IVC, Figment, ZMT Capital, AngelDAO and Paribu Ventures join returning investors Altonomy, Polychain and TRGC in this round of strategic investments.

“Altonomy believes in Mangata’s efforts to connect major blockchains, improve security for traders, and help reduce fees by removing gas from the equation, which is why we are returning for our second funding round,” Altonomy director Ricky Li said.

Olaf Carlson-Wee, founder and CEO of investment firm Polychain Capital, was actually the first to fund Mangata’s vision of an efficient DEX without MEVs.

Leveraging Polkadot Interoperability

Slovakia-based Mangata, both a blockchain and a DEX, will be connected as a parachain into the Polkadot ecosystem. By choosing Polkadot’s versatile DEX, Mangata hopes to leverage Polkadot’s key value proposition, interoperability.

Polkadot is a layer-1 blockchain network designed to support various interconnected, application-specific chains called parachains.Each chain built in its network uses Parity Technologies’ Substrate modular framework, allowing developers to choose the specific components that work best for their chain and optimize their chain for a specific use case

The entire parachain ecosystem plugs into a base platform called the relay chain. The underlying platform is responsible for providing security for the network’s parachains and contains Polkadot’s consensus and voting logic.

Mangata is a one-stop shop for easily and securely trading Polkadot (DOT) assets, while acting as a bridge between Ethereum and Polkadot so that assets can be seamlessly migrated between the two ecosystems on-demand.

It is actually the first parachain to build a dedicated ETH<>Polkadot transaction UI. In addition to connecting these two important blockchains, Magnata also connects other popular layer 1 blockchains; Cosmos, Solana, and Avalanche.

New Proof of Liquidity Mechanism

Founded in 2020 by Peter Kris, who previously founded European web3 studio Block Unison, and computer scientist CTO Gleb Urvanov, Mangata aims to solve some of the biggest problems facing insider trading and institutional adoption facing the DeFi and crypto markets. Other barriers to mainstream DEX adoption include complex structures, price oracle manipulation, and flash loan attacks.

With a 14-person team that includes software engineers, product designers, blockchain experts, and business strategists, Mangata believes it is uniquely positioned to achieve its goal of eliminating these problems.

To drive DeFi and cryptocurrency adoption, Mangata will leverage its funds to offer lower fixed fees per operation, increase capital efficiency through on-chain price orders and MEV prevention, while providing the first user interface to trade ERC20 tokens with Native Polkadot assets.

This community-driven DEX is secured through its unique Proof of Liquidity mechanism that reuses liquidity to ensure chain security. This helps create deeper liquidity pools, improves capital efficiency, and allows stakers to earn rewards twice.

“Mangata’s unique Proof of Liquidity mechanism raises the bar on chain security and staking rewards, and our fuel-free economy eliminates the slow, expensive settlements that are rampant on other blockchains. This latest funding round will allow us to continue Our mission, to create a better crypto marketplace for everyone inside and outside the Polkadot ecosystem,” CEO Chris said.

Additionally, the project deliberately does not support smart contracts, self-executing contracts written directly into lines of code to further protect itself from exploitation by malicious actors or bots.

The first production-ready Layer-1 DEX blockchain also prevents major forms of price manipulation and maximum extractable value (MEV). While other blockchains are vulnerable to preemptive bots, Mangata DEX blocks them at the consensus layer using a new block production method, Themis architecture, which makes preemptive operations nearly impossible.

On top of all these benefits, Mangata’s design completely eliminates gas from the exchange equation, while other blockchains such as Ethereum charge extremely high gas fees, pricing out small users. This allows for faster settlement without increasing costs, as well as new strategies such as dollar cost averaging.

Algorithmic Buying and Burning

DEXs are designed in a way that ensures fixed fees while better controlling transaction costs and increasing arbitrage opportunities.

In addition to addressing the limitations of DeFi, 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.

The way this mechanism works is that 0.05% of the 0.3% commission charged by Mangata X will be used for this algorithmic purchase and burn. Meanwhile, 0.2% will serve as liquidity provider as LP fee, and 0.05% will serve as Treasury.

MGX has a hard cap of 4 billion, and at launch, 1 billion MGX will be released to provide deep liquidity. eighty percent The supply of MGX tokens will actually be distributed to the community, with 30% going to validation rewards and 37.5% going to LP rewards.

Now, ahead of the launch, Mangata is working with other DeFi protocols like Acala, Oak Network, Bifrost, and Moonriver to enable a cross-chain future and allow tokens to flow freely from one blockchain to another.

All in all, Magnata aims to create a high-quality trading system that facilitates community access to early Polkadot projects.

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