Decentralized exchanges (DEXs) are one of the strongest growing application segments in the DeFi landscape. However, they have yet to see widespread adoption due to a variety of challenges that plague them, ranging from complex user interfaces, rising fees and slow settlements as well as front-running practices by arbitrageur bots.
This is beginning to change with the advent of platforms such as Mangata Finance, which is creating a go-to exchange for all Polkadot- and Ethereum-based assets and providing a community-driven blockchain and DEX that solve DeFi’s biggest challenges.
Mangata Finance recently completed a $4.2 million funding round co-led by returning investors Altonomy, Polychain, and TRGC. The funding round that also saw the participation of Signum Capital, Headline, Figment, ZMT Capital, Paribu Ventures, and AngelDao is set to enable Mangata Finance to open the floodgates to profitable trading and investing in the DeFi world.
This funding round comes shortly after Mangata Finance’s launch of its first app-chain on the Kusama network (Polkadot’s experimental network).
Currently valued at $60 million in equity, Mangata Finance received the adulation of participating investors such as Altonomy’s director Ricky Li who said, “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 the second round of funding.”
This news couldn’t have come at a better time for Polkadot, which has seen its coveted parachain slot auction bring in $3.5 billion in DOT contributions from participants and is seeing increased demand as newly opened bridges and long-awaited protocol upgrades are being delivered.
Mangata Finance’s success further cements Polkadot’s status as a premier destination for serious projects looking to build scalable and performant innovations in the DeFi space, as recent studies have shown.
With this fresh injection of funds, Mangata Finance is looking to ramp up its velocity as well as partner with Acala (Polkadot’s Liquidity hub) and Oak Network.
Overall, this funding will be used to continue Mangata Finance’s mission of bringing about capital efficiency and enabling equitable blockchain designs for a better DeFi (decentralized finance) market within the Polkadot ecosystem and beyond.
Safe and Easy DEX Trading
Founded in 2020 by Mangata Labs, Mangata Finance is a DEX that brings category-defining architecture of blockchains that guarantee low fixed trading fees, enhances capital efficiency, and prevents front-running issues and MEV (Maximal Exctractable Value).
Built on Polkadot as a parachain, Mangata’s platform serves as a one-stop-shop for trading Polkadot assets as well as a bridge between Polkadot and Ethereum.
However, unlike most blockchain ecosystems, Mangata Finance features a no-gas economy that completely removes the need to pay gas fees when trading on Mangata Finance’s DEX.
In addition to its no-gas fee DEX, the platform also features a revolutionary Proof of Liquidity consensus protocol where the stake of a user is used as liquidity on Mangata’s DEX. This enables deeper liquidity pools, increases capital efficiency, and rewards stakers twice in the form of staking and trading rewards.
Solving MEV on DEXs
Most decentralized exchanges (DEXs) suffer from a relatively low trade volume and high slippage due to the lack of liquidity. This often leads to front-running or “maximal extractable value” (MEV) situations, where traders or miners with large order sizes can essentially ‘snipe’ the best prices before they are taken by other market participants. As a result, many small retail traders are left with worse prices, as they are unable to compete with these larger players.
In traditional finance, MEV practices can be compared to insider trading, as the large traders with prior knowledge of order book movements can take advantage of these situations. However, on other DEXes, there is no easy way to stop MEV as the rules of other blockchains have no way to prevent it..
Mangata Finance’s solution to this problem is a new block production architecture called Themis. This new method changes the way blocks are produced, effectively preventing nodes from censoring or changing the order of transactions.
In this way, Mangata Finance can provide a level playing field for all traders, regardless of their size or order volume.
Redefining DeFi
The $4.2 million investment into Mangata Finance is a vote of confidence not only in the project but in the Polkadot ecosystem as a whole. Mangata Finance promises to bring about a sustainable DeFi industry where all participants can benefit from the ecosystem without having to worry about skyrocketing gas fees or front running from miners or whales.
Going forward, Mangata Finance plans to use this funding to continue the development of the platform as well as expand its partnerships within the Polkadot ecosystem. With the backing of seasoned investors such as Altonomy, Polychain, and TRGC, Mangata Finance is poised to become one of the leading DeFi platforms on Polkadot and throughout the DeFi landscape.
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