What is Mango Markets DeFi Spot Margin and Futures on Solana [Solana Series]

Michael 0:00
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Hey, welcome to today’s episode. This is another one in the salon a series and it’s all about Mango Markets. So let’s jump into what exactly is Mango Markets. It’s a trader and maker friendly, decentralized trading platform and the initial core features of the platform will be fully on chain margin trading, limit order books as well as perpetual futures, which are the main drivers of centralized exchange revenue. Moving those to DeFi is an essential step from money Legos to overcome the CeFi platforms. Mango intends to merge the liquidity and usability of CeFi with the permissionless innovation of DeFi, at a lower cost to the end user than both currently provide. In the medium term, the goal is to rival centralized exchanges in trading volume. This is a highly ambitious project, and the team… they’re up for the test. They believe they can achieve this. And they believe that a permissionless ecosystem will produce phenomenal innovations that will overtake centralized finance. So let’s unpack some of the benefits and features shall we? Well, it’s built on Solana so, building on Solana has given it extreme speed and access to the entire Solana ecosystem as well as very low gas or transaction costs. So the low transaction costs although it’s not possible to escape fees, it has low transaction costs Mango financial tools will be comparable to or lower than the cost and CeFi which is centralized finance. So what makes Mango unique. The key ingredients for this vision are low latency, low transaction costs, and full decentralization so they believe in all three ingredients are necessary for the project to be viable, and all three ingredients are finally available on Solana. Mango intends to win the long game and financial services. Rock bottom fees make Mango hard to compete against.

Let’s break down the perpetual futures markets. Mango also offers perpetual futures built on the Mango protocol with its own orderbook so you can trade with up to 10x leverage and enjoy permissionless price exposure to any of the assets in Mango. There’s also a risk calculator tool and this helps estimate liquidation scenarios on leveraged position. Liquidation events occur when your collateral ratio drops below 110%. Since positions are cross margin, there is not always a straightforward liquidation price to provide. With this tool, you can predict liquidations by providing assumptions on an asset prices and other account details. Let’s break down the insurance fund. The Mango program will have some portion of the Mango DAO Treasury as the insurance fund. When there are bankrupt accounts the insurance fund will pay off losses incurred by token lenders or contract participants. And the founders of this project Mango Markets are two people one named Dafydd and the other named Maximilian. Mango Markets has its own token and the Mango Token is a governance token first and foremost. Collectively the token holders have the power to upgrade the protocol as they see fit. This allows token holders to create incentives to reward participation and drive usage on the protocol. After the initial distribution of tokens only the DAO may distribute more tokens via governance proposals. The intent is for Mango Token to be distributed liberally to protocol builders, liquidity providers and Project Contributors in a fully transparent way. And they also have… the token is used in conjunction with the Mango token governance model. So I hope this is basically provided some light as to what is Mango Markets. Definitely like and subscribe to the podcast and chime in here tomorrow for another special episode. If you have a request for an episode, email me or send me a message on the website newtocrypto.io just go over to the Contact Us page. Until tomorrow, make it a great day.

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