Jekyll2024-01-24T12:46:12+00:00https://blog.mangata.finance/feed.xmlMangata blogMangata is an omnichain liquidity network with the vision to make tokens from all ecosystems tradable on a single exchange. Built on Eigenlayer and Starkware technology, it features gas-free swaps, prevents front-running and MEV, increases capital efficiency with the revolutionary proof-of-liquidity consensus, and offers weight voting and permissionless third-party incentives. As an appchain building on Substrate, it is not bound by legacy EVM restrictions and optimizes the whole ecosystem around capital efficiency and fairness.Mangata X lists Bifrost-BNC - Liquidity Mining for BNC-MGX starts on December 23!2022-12-22T00:00:00+00:002022-12-22T00:00:00+00:00https://blog.mangata.finance/blog/mangata-x-lists-bifrost-bnc-liquidity-mining-bnc-mgx<p>Mangata X proudly presents a new token listing on the platform. BNC (Bifrost Native Coin) is getting listed on Mangata X on the 22nd of December 2022. After the listing, users will be able to provide liquidity for BNC pairs and start earning rewards for providing liquidity to the BNC-MGX pool.</p>
<ul>
<li>Depositing on the Trading App starts at: 11am UTC</li>
<li>Liquidity Mining starts at: 14pm UTC</li>
</ul>
<p>Users can find guides on how to deposit to the chain as well as liquidity provisions on our <a href="https://mangata-finance.notion.site/User-Guide-f53e744dc1be4fbf809fc8f3f127b2a8" target="\_blank">User Guides section on the Mangata Public Workspace</a>.</p>
<h2 id="pool-weights-and-incentives">Pool Weights and Incentives</h2>
<p>After extensive deliberations on Mangata Forums, the Concil will vote on the new pool weights for both new and existing promoted pools on Mangata X. The weight for the BNC-MGX pool will be 10% of the current incentives, which corresponds to 82,000 MGX per day! The targeted APR for this liquidity pair is 277% on the targeted liquidity of 10,000 USD. Mangata X users are encouraged to join the discussion on pool weights through <a href="https://discord.com/channels/776977650907480074/1047932033701269554" target="\_blank">Mangata Forums on our Discord channel</a>.</p>
<p><img src="/assets/posts/2022-12-22-bnc-mgx-pool-weights.png" alt="Untitled" /></p>
<h2 id="new-routes-for-mgx-liquidity">New Routes for MGX Liquidity</h2>
<p>BNC is the first L1 token on Mangata X that has already established liquidity on other DEX and CEXes. It has an 8.3m USD fully diluted value (FDV) and is already listed on DeFi platforms like Karura and Zenlink. While this enables multiple arbitrage opportunities for Mangata users, BNC’s CEX exposure is also very important as it is listed on 5 major exchanges including Kraken and Kucoin.</p>
<h2 id="contributing-to-the-defi-space">Contributing to the DeFi Space</h2>
<p>The issuer of BNC, Bifrost Finance is a DeFi parachain that focuses on liquid staking and liquid crowdloan derivatives. With its $42m TVL, Bifrost allows users to tap into the earnings possibilities of native staking without dealing with the inner complexities. Therefore, Bifrost’s vision perfectly matches Mangata’s focus on capital efficiency since they provide unlocked liquidity to the ecosystem with liquid staking products such as vKSM, vsKSM, vMOVR, and vBNC. You can watch our previous call with Tyrone Pan from Bifrost to learn more about liquid derivatives.</p>
<iframe width="720" height="405" src="https://www.youtube.com/embed/ny3eCK3NRso" title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen=""></iframe>
<h2 id="dont-be-left-out-in-the-cold"><strong>Don’t Be Left Out in the Cold!</strong></h2>
<p>Follow Mangata Finance to get updated on all our latest developments:</p>
<ol>
<li>Follow us on Twitter <a href="https://twitter.com/MangataFinance" target="\_blank">@MangataFinance</a></li>
<li>Join the <a href="https://t.me/mgtfi" target="\_blank">Telegram</a></li>
<li>Subscribe to our <a href="http://youtube.com/c/MangataFinance" target="\_blank">YouTube channel</a></li>
<li>Join the <strong>Mangata X</strong> Newsletter at <a href="https://x.mangata.finance/" target="\_blank">x.mangata.finance</a></li>
<li>Join the <a href="https://discord.gg/mangata" target="\_blank">Discord channel</a></li>
</ol>
<hr />
<p><img src="/assets/posts/2022-12-22-airwhale-winter.png" alt="untitled" /></p>
<p><strong><a href="https://commons.wikimedia.org/wiki/File:Ivan_Constantinovich_Aivazovsky_-_Winter_Scene_in_Little_Russia.JPG" target="\_blank">Ivan Aivazovsky - Winter Scene</a></strong></p>
<hr />
<h2 id="about-bifrost">About Bifrost</h2>
<p>Bifrost’s mission is to provide standardized cross-chain interest-bearing derivatives for Polkadot and Kusama relay chains, parachains, and heterogeneous chains bridged with Dotsama. Furthermore, by aggregating over 80% of PoS consensus chains’ staking liquidity through cross-chain derivatives, Bifrost’s protocol lowers users’ staking threshold, increases the multi-chain staking ratio, and improves the ecosystem’s application interest base, by creating a three-way positive cycle for the StakeFi ecosystem by empowering users, multi-chains, and ecosystem applications.</p>
<h2 id="about-mangata">About Mangata</h2>
<p>Mangata is on a mission to become the #1 DEX on Polkadot, offering traders and liquidity providers the best platform to access unique tokens and earn rewards.</p>
<p>We believe that everyone should have the opportunity to participate in the decentralized economy and benefit from the power of blockchain technology. That’s why we’re creating a user-friendly platform that makes it easy for users to trade, provide liquidity, and earn from multiple passive income streams through double staking rewards, even if they’re new to crypto.</p>
<p>Mangata will offer access to the widest array of Polkadot tokens, better prices for traders by mitigating MEV, and the ability to trade without gas.</p>
<p>At Mangata, we’re dedicated to building a fair and transparent platform that puts the needs of users first, offering the lowest fees for traders and the highest rewards for stakers. We’re committed to continuously improving our platform and offering new features that provide even more value to our users.</p>
<p>Join us on our mission to become the #1 DEX on Polkadot and unlock the full potential of the decentralized economy.</p>
<table>
<tbody>
<tr>
<td><a href="https://mangata.finance/" target="\_blank">Website</a> </td>
<td> <a href="https://twitter.com/MangataFinance" target="\_blank">Twitter</a> </td>
<td> <a href="https://discord.com/invite/mangata" target="\_blank">Discord</a> </td>
<td> <a href="https://t.me/mgtfi" target="\_blank">Telegram</a> </td>
<td> <a href="https://www.youtube.com/c/mangatafinance/" target="\_blank">YouTube</a> </td>
<td> <a href="https://github.com/mangata-finance" target="\_blank">GitHub</a> </td>
<td> <a href="https://blog.mangata.finance/" target="\_blank">Blog</a></td>
</tr>
</tbody>
</table>Mangata TeamMangata X proudly presents a new token listing on the platform. BNC (Bifrost Native Coin) is getting listed on Mangata X on the 22nd of December 2022. After the listing, users will be able to provide liquidity for BNC pairs and start earning rewards for providing liquidity to the BNC-MGX pool.Listing Bifrost tokens BNC, vMOVR, vKSM, and vsKSM on Mangata X2022-12-01T00:00:00+00:002022-12-01T00:00:00+00:00https://blog.mangata.finance/blog/mangata-to-list-bifrost-tokens<p>Today, we are excited to announce the listing of four new tokens on Mangata X: BNC, vMOVR, vKSM, and vsKSM. The listing will double the amount of tokens available on the Kusama DEX Mangata X. These tokens will be made available through a new XCM channel to Bifrost. MGX will become available on the Bifrost chain. Users will be able to deposit and swap tokens in the coming days. New liquidity mining incentives and arbitrage opportunities will open up as a result of these listings.</p>
<h2 id="connecting-bifrosts-capital-efficiency-to-mangata-x">Connecting Bifrost’s Capital Efficiency to Mangata X</h2>
<p>Bifrost is a DeFi parachain that focuses an liquid staking and liquid crowdloan derivatives. It allows users to tap into the earnings possibilities of native staking without having to deal with the inner complexities. Therefore, Bifrost’s vision is a perfect match for Mangata’s focus on capital efficiency.</p>
<h2 id="new-token-listings">New token listings</h2>
<p>Four tokens will be made available for trading on Mangata X:</p>
<ol>
<li>BNC, the native token of Bifrost Finance, represents a stake in the Bifrost</li>
<li>vMOVR is Bifrost’s latest product and offers liquid staked MOVR. It represents staked MOVR from the Moonriver parachain that is staked and accrues interest in MOVR over time.</li>
<li>vKSM is liquid staked KSM. Similarly to vMOVR, it allows users to get exposure to KSM staking rewards without having to deal with the complexities of staking themselves.</li>
<li>vsKSM represents liquid crowdloaned KSM. It is given to users who crowdloan to Kusama parachains via Bifrost.</li>
</ol>
<h2 id="new-earnings-opportunities-with-incentives-and-arbitrage-opportunities">New Earnings Opportunities with Incentives and Arbitrage Opportunities</h2>
<p>As those new tokens enter the Mangata X ecosystem, it will open up new earnings opportunities for liquidity providers and arbitrage traders.</p>
<p>Liquidity mining incentives will be decided by the Mangata X council in the coming days. The Council will leverage the new <a href="https://blog.mangata.finance/blog/2022-11-25-mangata-introduces-liquidity-gauges-and-weight-voting/" target="\_blank">Liquidity Gauges</a> feature which is being launched on Mangata X this week. The community is invited to make suggestions on which pairs should be incentivized on the Mangata Discord.</p>
<p>As more pairs get listed on Mangata X, new arbitrage opportunities to other DEXes in the ecosystem open up for active observers.</p>
<p>Pool creation on Mangata X is permissionless, anyone can do it. Alongside the protocols’ promoted pools, Mangata X users will be able to create custom Liquidity pools between the tokens that are already listed on Mangata X.</p>
<p><img src="/assets/posts/2022-12-01-airwhale-valhalla.png" alt="airwhale valhalla.png" /></p>
<p><a href="https://commons.wikimedia.org/wiki/File:Walhalla_(1896)_by_Max_Br%C3%BCckner.jpg" target="\_blank">Valhalla (1896) - Max Brückner</a></p>
<h2 id="rollout">Rollout</h2>
<p>As this represents a larger rollout with 4 more tokens entering the Mangata X ecosystem, we will proceed in steps and will make further announcements on the exact listing times and modalities.</p>
<p>Join us in our socials to stay updated on the latest developments, and accompany us on our ride through Valhalla!</p>
<ol>
<li>Follow us on Twitter <a href="https://twitter.com/MangataFinance" target="\_blank">@MangataFinance</a></li>
<li>Join our channel on <a href="https://t.me/mgtfi" target="\_blank">Telegram</a></li>
<li>Subscribe to our <a href="http://youtube.com/c/MangataFinance" target="\_blank">YouTube channel</a></li>
<li>Join the <strong>Mangata X</strong> Newsletter at <a href="https://x.mangata.finance/" target="\_blank">x.mangata.finance</a></li>
<li>Join the <a href="https://discord.gg/mangata" target="\_blank">Discord channel</a></li>
</ol>
<h2 id="to-valhalla">To Valhalla</h2>
<p>Yet another shipment is served to you by the Mangata team, and there will be much more in the upcoming weeks. Our increasing number of channels and collaborations with other projects within the Polkadot ecosystem might also bring some other opportunities in the near future, like the listing of MGX on other exchanges.</p>Mangata TeamToday, we are excited to announce the listing of four new tokens on Mangata X: BNC, vMOVR, vKSM, and vsKSM. The listing will double the amount of tokens available on the Kusama DEX Mangata X. These tokens will be made available through a new XCM channel to Bifrost. Users will be able to deposit and swap tokens in the coming days. New liquidity mining incentives and arbitrage opportunities will open up as a result of these listings.Mangata introduces Liquidity Gauges and Weight Voting to Polkadot2022-11-25T00:00:00+00:002022-11-25T00:00:00+00:00https://blog.mangata.finance/blog/mangata-introduces-liquidity-gauges-and-weight-voting<p>Liquidity Gauges are a powerful incentive mechanism pioneered by Curve Finance on Ethereum that has led to deep liquidity, increased governance participation, and resulted in the infamous “Flywheel Effect” and the Curve Wars.</p>
<p>Mangata Labs is now introducing Liquidity Gauges and Weight Voting to the Polkadot Ecosystem. The first release will go live on Mangata X next week.</p>
<p>This article describes Liquidity Gauges, the underlying foundations that make them so successful and lays out the path for how Mangata will introduce them to the Polkadot ecosystem, starting with Mangata X on Kusama.</p>
<iframe width="720" height="405" src="https://www.youtube.com/embed/3CIx16uRAuU" title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen=""></iframe>
<h2 id="how-curve-pioneered-the-liquidity-gauge">How Curve pioneered the Liquidity Gauge</h2>
<h3 id="democratizing-incentives">Democratizing Incentives</h3>
<p>As DeFi protocols become more powerful, the question of how liquidity mining emissions shall be distributed can become very contentious. It’s a <em>“make or break”</em> factor that decides if a protocol becomes hugely successful or succumbs to political infighting and corruption.</p>
<p>To solve this problem, Curve Finance has introduced <a href="https://curve.readthedocs.io/dao-gauges.html" target="\_blank">Liquidity Gauges</a> on top of their liquidity pools. Liquidity Gauges essentially control the flow of rewards in the system: Which liquidity pools shall receive rewards and how are they distributed among liquidity providers? Gauges are a simple, powerful, and flexible tool that gives the DAO governance the levers to direct rewards to where they add the most value.</p>
<p>Gauges are made possible by weight voting. Weight voting on Curve democratizes decision-making. With it, token holders can vote on which liquidity pool shall receive incentives, thus giving each user a voice and each token utility by steering the policy of the DAO.</p>
<p><img src="/assets/posts/2022-11-25-mangata-introduces-liquidity-gauges-and-weight-voting-curve.png" alt="gauge-relative-weight.png" /></p>
<p>Additionally, protocols seeking liquidity on Curve get a means to incentivize liquidity provision by rewarding users that vote favorably.</p>
<h3 id="the-flywheel-effect">The Flywheel Effect</h3>
<p>Introducing Curve Liquidity Gauges was a very successful strategy and led to a surge in liquidity provision and governance participation. And of course, the infamous <a href="https://www.youtube.com/watch?v=-0Q3fp-wzXI" target="\_blank">Curve Wars</a>, where protocols compete for voting power in Curve.</p>
<p>The underlying genius of Liquidity Gauges and Weight Voting is that value-adding behavior becomes incentivized! Steering the protocol via governance participation as well as providing liquidity are beneficial behaviors that receive proper compensation from Liquidity Gauges.</p>
<p>As the proper value-adding behavior gets incentivized, the effect of growing interest compounds in the so-called Flywheel effect, where network effects take over to increase interest in the protocol.</p>
<p>In practical terms: Liquidity Gauges package features together that are beneficial for the growth of the ecosystem.</p>
<h2 id="launching-the-liquidity-gauge-on-mangata-x">Launching the Liquidity Gauge on Mangata X</h2>
<p>As Mangata is striving to solve the big problems of DeFi, we intend to leverage the best solutions available on the market and invent new ones where they don’t exist yet. After having analyzed dozens of solutions, we think that Liquidity Gauges provide an excellent mental framework to gather value-adding features under one umbrella.</p>
<p>We start by providing the following features of the Liquidity Gauge to be voted into effect by the Mangata X Council:</p>
<ul>
<li>Weight Voting V1</li>
<li>Time Incentivization V2</li>
</ul>
<h3 id="weight-voting-v1">Weight Voting V1</h3>
<p>Previously, the constant emission of 300 million MGX per year in liquidity mining rewards was distributed equally among all incentivized pools on Mangata X. This left little control for governance to strategically direct incentives.</p>
<p><img src="/assets/posts/2022-11-25-mangata-introduces-liquidity-gauges-and-weight-voting-current.png" alt="Mangata X - Current Reward Distribution.png" /></p>
<p>Starting with Weight Voting V1, we introduce a mechanism for Governance to set up weights for each incentivized liquidity pool. This gives Governance fine-grained control and opens up the possibility for a sophisticated framework that considers many different factors and signals to determine incentives, such as relative liquidity distribution, strategic growth goals, and more.</p>
<h3 id="time-incentivization-v2">Time Incentivization V2</h3>
<p><a href="https://blog.mangata.finance/blog/2022-07-19-time-incentivization/" target="\_blank">Time Incentivization</a> is Mangata’s novel mechanism to attract calm liquidity and reward loyal liquidity provision by increasing rewards the longer one provides liquidity. While Weight Voting decides on liquidity mining rewards on all pools, Time Incentivization decides how incentives are distributed within a pool.</p>
<p><img src="/assets/posts/2022-11-25-mangata-introduces-liquidity-gauges-and-weight-voting-time-incentivization.png" alt="Untitled" /></p>
<p>After having it launched in June 2022, we gained valuable insights and are proud to release Time Incentivization V2, which adds improved checkpointing and opens up the chain to introduce Gasless Swaps, Multi-Purpose Liquidity (Stake Once, Earn Twice), and <a href="https://blog.mangata.finance/blog/2021-11-08-proof-of-liquidity/" target="\_blank">Proof-of-Liquidity</a> in the coming weeks and months.</p>
<h3 id="progressively-decentralizing">Progressively Decentralizing</h3>
<p>The features will be provided to the Mangata X Governance, which currently is formed by the Mangata X Council. Going forward, it will be able to lead the dialogue with the community and decide on how to configure the Gauge.</p>
<p>We expect this to be an iterative learning process, which will also give us a great opportunity to onboard the Mangata community into the governance process and find a common base to debate the direction of the chain.</p>
<p>We have published the <a href="https://www.notion.so/DRAFT-Mangata-X-Incentivization-Framework-b1695afba51a4f51a8c75c0d2f7edf5a" target="\_blank">Mangata X Incentivization Framework</a> and are posting the first proposal for updated weights with the publication of this blog post on the <a href="https://discord.gg/mangata" target="\_blank">Mangata Discord</a>. We invite everyone to participate in the discussion and steer the direction of incentives on Mangata X.</p>
<p>As we go forward, we will explore paths to decentralize this feature further and give token holders the ability to participate in Weight Voting and other aspects of the Liquidity Gauge.</p>
<h2 id="become-a-stakeholder">Become a stakeholder!</h2>
<p>We are excited to introduce this dynamic and exciting feature to the Polkadot ecosystem. We believe that Mangata X on Kusama is the perfect testing ground to innovate and see how we can find a market fit and leverage Substrate to create the flyest of wheels. We invite you to become part of the revolution.</p>
<ul>
<li><strong>Liquidity Providers:</strong> If you are a liquidity provider on Mangata X, engaging in governance can give you a competitive edge in the future in deciding where rewards are going. We would love to have you as a part of the discussion.</li>
<li><strong>Protocols:</strong> Are you looking for liquidity or to engage your community meaningfully? We invite you to get in contact and explore options to get MGX incentives for your desired pair.</li>
<li><strong>Governance Connoisseurs:</strong> Are you in it for the governance? We understand! Come join our Discord and keep your eyes and ears open for opportunities to create a new governance culture and build a new incentivization framework.</li>
</ul>
<h2 id="make-sure-to-stay-in-the-loop">Make sure to stay in the loop</h2>
<ol>
<li>Follow us on Twitter <a href="https://twitter.com/MangataFinance" target="\_blank">@MangataFinance</a></li>
<li>Join our channel on <a href="https://t.me/mgtfi" target="\_blank">Telegram</a></li>
<li>Subscribe to our <a href="http://youtube.com/c/MangataFinance" target="\_blank">YouTube channel</a></li>
<li>Join the <strong>Mangata X</strong> Newsletter at <a href="https://x.mangata.finance/" target="\_blank">x.mangata.finance</a></li>
<li>Join the <a href="https://discord.gg/mangata" target="\_blank">Discord channel</a></li>
</ol>
<h2 id="about-mangata">About Mangata</h2>
<p>Mangata is the next-generation DEX of Polkadot with the vision to make tokens from all ecosystems tradable on a single DEX. It features gasless swaps, prevents front-running and MEV, and increases capital efficiency with the revolutionary proof-of-liquidity consensus. As a Layer 1 app-chain building on Substrate, it is not bound by legacy EVM restrictions and optimizes the whole ecosystem around capital efficiency and fairness. Mangata X is the DEX of Kusama that broke records when closing its crowdloan within 50 minutes.</p>
<table>
<tbody>
<tr>
<td><a href="https://mangata.finance/" target="\_blank">Website</a> </td>
<td> <a href="https://twitter.com/MangataFinance" target="\_blank">Twitter</a> </td>
<td> <a href="https://discord.com/invite/mangata" target="\_blank">Discord</a> </td>
<td> <a href="https://t.me/mgtfi" target="\_blank">Telegram</a> </td>
<td> <a href="https://www.youtube.com/c/mangatafinance/" target="\_blank">YouTube</a> </td>
<td> <a href="https://github.com/mangata-finance" target="\_blank">GitHub</a> </td>
<td> <a href="https://blog.mangata.finance/" target="\_blank">Blog</a></td>
</tr>
</tbody>
</table>Mangata TeamLiquidity Gauges are a powerful incentive mechanism pioneered by Curve Finance on Ethereum that has led to deep liquidity, increased governance participation, and resulted in the infamous “Flywheel Effect” and the Curve Wars. Mangata Labs is now introducing Liquidity Gauges and Weight Voting to the Polkadot Ecosystem. The first release will go live on Mangata X next week.Mangata X concludes IMBU bootstrap with $7m FDV2022-11-11T00:00:00+00:002022-11-11T00:00:00+00:00https://blog.mangata.finance/news/mangata-x-concludes-imbu-bootstrap<p><em>Kusama DEX lists Web3 token for trading, offers 250% APR</em></p>
<p>The Web3 economy in Polkadot is growing: Imbue Network, the decentralized crowdfunding solution, has successfully bootstrapped its IMBU token on Mangata X. The IMBU-MGX liquidity bootstrapping event saw more than 100 users participating and resulted in an FDV of 7m USD.</p>
<p>“Mangata X performed an excellent token bootstrap during one of the worst storms of crypto winter. We are proud of our team for their dedicated work in a time like this. Whatever happens, Mangata continues building.”, says Peter Kris, Founder, and CEO of Mangata Finance.</p>
<p>In total, $44k in liquidity (20m MGX and ~600k IMBU) have been provided for the bootstrap, resulting in an IMBU:MGX ratio of 1:33.3 at the start of trading. Trading between the MGX-IMBU pair started only seconds after the bootstrap was completed.</p>
<p>”This was a very smooth launch! Web3 can be chaotic, but we have shown that the Polkadot and Kusama ecosystems are home to some of the most professional and experienced development teams in Crypto”, said Sam Elamin, Founder of Imbue Network.</p>
<p>Users can now trade between MGX and IMBU on <a href="http://app.mangata.finance" target="\_blank">app.mangata.finance</a>. The initial APR of liquidity provision for the IMBU-MGX pair is 250%. Users can find more information in the <a href="https://www.notion.so/User-Guide-f53e744dc1be4fbf809fc8f3f127b2a8" target="\_blank">User Guide</a></p>
<h2 id="make-sure-to-stay-in-the-loop">Make sure to stay in the loop</h2>
<ol>
<li>Follow us on Twitter <a href="https://twitter.com/MangataFinance" target="\_blank">@MangataFinance</a></li>
<li>Join our channel on <a href="https://t.me/mgtfi" target="\_blank">Telegram</a></li>
<li>Subscribe to our <a href="http://youtube.com/c/MangataFinance" target="\_blank">YouTube channel</a></li>
<li>Join the <strong>Mangata X</strong> Newsletter at <a href="https://x.mangata.finance/" target="\_blank">x.mangata.finance</a></li>
<li>Join the <a href="https://discord.gg/mangata" target="\_blank">Discord channel</a></li>
</ol>
<h2 id="about-mangata">About Mangata</h2>
<p>Mangata is the next-generation DEX of Polkadot with the vision to make tokens from all ecosystems tradable on a single DEX. It features gasless swaps, prevents front-running and MEV, and increases capital efficiency with the revolutionary proof-of-liquidity consensus. As a Layer 1 app-chain building on Substrate, it is not bound by legacy EVM restrictions and optimizes the whole ecosystem around capital efficiency and fairness. Mangata X is the DEX of Kusama that broke records when closing its crowdloan within 50 minutes.</p>
<table>
<tbody>
<tr>
<td><a href="https://mangata.finance/" target="\_blank">Website</a> </td>
<td> <a href="https://twitter.com/MangataFinance" target="\_blank">Twitter</a> </td>
<td> <a href="https://discord.com/invite/mangata" target="\_blank">Discord</a> </td>
<td> <a href="https://t.me/mgtfi" target="\_blank">Telegram</a> </td>
<td> <a href="https://www.youtube.com/c/mangatafinance/" target="\_blank">YouTube</a> </td>
<td> <a href="https://github.com/mangata-finance" target="\_blank">GitHub</a> </td>
<td> <a href="https://blog.mangata.finance/" target="\_blank">Blog</a></td>
</tr>
</tbody>
</table>Mangata TeamKusama DEX lists Web3 token for trading, offers 250% APR. The Web3 economy in Polkadot is growing: Imbue Network, the decentralized crowdfunding solution, has successfully bootstrapped its IMBU token on Mangata X. The IMBU-MGX liquidity bootstrapping event saw more than 100 users participating and resulted in an FDV of 7m USD.Mangata X Forms On-Chain Council2022-11-09T00:00:00+00:002022-11-09T00:00:00+00:00https://blog.mangata.finance/news/mangata-x-introduces-on-chaon-council<p><strong>Council enacted runtime upgrade, opened XCM channel and launched a bootstrap.</strong>
Mangata X takes one more step towards decentralization. The on-chain council was just introduced as a part of the Mangata X governance. The council is able to introduce important feature upgrades, manage the MGX Treasury, and steer the growing Kusama DEX.</p>
<p>The council consists of hardworking contributors and team members to Mangata Finance. It currently holds power to decide on all matters of the chain. This is an important step to transition control away from the single “sudo” key to multiple contributors to the chain. An important step towards more decentralization and reducing risks and liabilities.</p>
<p>In the future, it is our intention to decentralize Mangata X and the council progressively. We envision a council where active community members, stakeholders, and partnering protocols of Mangata X will also be able to join the council.</p>
<p><img src="/assets/posts/2022-11-09-council-artwork.png" alt="" /></p>
<p><strong><a href="https://www.wikiart.org/en/rembrandt/the-syndics" target="\_blank">The Syndics - Rembrandt</a></strong></p>
<h2 id="make-sure-to-stay-in-the-loop">Make sure to stay in the loop</h2>
<ol>
<li>Follow us on Twitter <a href="https://twitter.com/MangataFinance" target="\_blank">@MangataFinance</a></li>
<li>Join our channel on <a href="https://t.me/mgtfi" target="\_blank">Telegram</a></li>
<li>Subscribe to our <a href="http://youtube.com/c/MangataFinance" target="\_blank">YouTube channel</a></li>
<li>Join the <strong>Mangata X</strong> Newsletter at <a href="https://x.mangata.finance/" target="\_blank">x.mangata.finance</a></li>
<li>Join the <a href="https://discord.gg/mangata" target="\_blank">Discord channel</a></li>
</ol>
<h2 id="about-mangata">About Mangata</h2>
<p>Mangata is the next-generation DEX of Polkadot with the vision to make tokens from all ecosystems tradable on a single DEX. It features gasless swaps, prevents front-running and MEV, and increases capital efficiency with the revolutionary proof-of-liquidity consensus. As a Layer 1 app-chain building on Substrate, it is not bound by legacy EVM restrictions and optimizes the whole ecosystem around capital efficiency and fairness. Mangata X is the DEX of Kusama that broke records when closing its crowdloan within 50 minutes.</p>
<table>
<tbody>
<tr>
<td><a href="https://mangata.finance/" target="\_blank">Website</a> </td>
<td> <a href="https://twitter.com/MangataFinance" target="\_blank">Twitter</a> </td>
<td> <a href="https://discord.com/invite/mangata" target="\_blank">Discord</a> </td>
<td> <a href="https://t.me/mgtfi" target="\_blank">Telegram</a> </td>
<td> <a href="https://www.youtube.com/c/mangatafinance/" target="\_blank">YouTube</a> </td>
<td> <a href="https://github.com/mangata-finance" target="\_blank">GitHub</a> </td>
<td> <a href="https://blog.mangata.finance/" target="\_blank">Blog</a></td>
</tr>
</tbody>
</table>Mangata TeamCouncil enacted runtime upgrade, opened XCM channel and launched a bootstrap. Mangata X takes one more step towards decentralization. The on-chain council was just introduced as a part of the Mangata X governance. The council is able to introduce important feature upgrades, manage the MGX Treasury, and steer the growing Kusama DEX.Mangata X lists IMBU from Imbue Network - Liquidity Bootstrapping Event on 7th of November 20222022-10-27T00:00:00+00:002022-10-27T00:00:00+00:00https://blog.mangata.finance/blog/imbu-listing-and-bootstrap<p>Mangata X is about to list IMBU, the native token of the Imbue Network. Imbue is aiming to provide decentralized crowdfunding services in the Polkadot ecosystem. IMBU will be bootstrapped on the Kusama DEX with the IMBU-MGX pair on the 7th of November. The bootstrap will run for 3 days, and Mangata X users and the Imbue community will be able to join the bootstrap by providing IMBU or MGX. After the bootstrap, IMBU will be tradable on <a href="https://app.mangata.finance/" target="\_blank">app.mangata.finance</a>.</p>
<h2 id="decentralized-crowdfunding">Decentralized Crowdfunding</h2>
<p>Imbue Network is building an alternative to centralized crowdfunding platforms like Kickstarter and Indiegogo. They are aiming to create a platform that solves fundamental problems in launching crypto projects, such as the lack of transparency and further accountability.</p>
<p>The projects that will utilize Imbue’s crowdfunding mechanism will be subject to prove their accomplishments to the community according to their milestones. This way, Imbue targets to protect investors from harmful projects that do not follow their promises, and bring a vetting mechanism for those projects while making them accessible to retail investors in a decentralized manner.</p>
<p>As a receiver of grants from Web3 Foundation and Substrate Builders Program, Imbue Network’s native token IMBU is one of the most anticipated tokens in the ecosystem. Imbue is not funded with venture capital, and offers the Dotsama community a fair and community-focused token launch with the IMBU-MGX Bootstrap.</p>
<p>We recently invited Sam Elamin from Imbue Network to a call:</p>
<iframe width="720" height="405" src="https://www.youtube.com/embed/HAiS942WSmU" title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen=""></iframe>
<p><strong>Do not miss the chance to be a part of this occasion and join the bootstrap!</strong></p>
<h2 id="imbu-mgx-bootstrap--incentive-program">IMBU-MGX Bootstrap & Incentive Program</h2>
<p>The bootstrap will start on the 7th of November at <a href="http://liquidity.mangata.finance" target="\_blank">liquidity.mangata.finance</a>. Mangata X users can join the bootstrap by contributing MGX or IMBU tokens. The participants of the IMBU-MGX bootstrap will receive LP tokens according to the final allocation of the bootstrap pool.</p>
<p>The IMBU-MGX pool will be incentivized starting with a rate of 100m MGX per year. We expect the initial APR to be above 100%.</p>
<p>Here is a guide on how to contribute to the bootstrap: <a href="https://www.notion.so/How-To-Mangata-Bootstrap-fe088af3ea47498189d253d27c97f081" target="\_blank">HowTo: Mangata Bootstrap</a></p>
<p><img src="/assets/posts/2022-10-27-imbue-artwork.png" alt="" /></p>
<p><strong><a href="https://commons.wikimedia.org/wiki/File:%D0%A1%D0%BC%D0%BE%D1%82%D1%80_%D0%A7%D0%B5%D1%80%D0%BD%D0%BE%D0%BC%D0%BE%D1%80%D1%81%D0%BA%D0%BE%D0%B3%D0%BE_%D1%84%D0%BB%D0%BE%D1%82%D0%B0_%D0%B2_1849_%D0%B3%D0%BE%D0%B4%D1%83.jpg" target="\_blank">Parade of the Black Sea Fleet - Ivan Aivazovsky</a></strong></p>
<h2 id="more-tokens-coming">More Tokens Coming</h2>
<p>The Mangata team is dedicated to bringing more tokens to the Kusama DEX. After listing the TUR token recently, Mangata continues to present unique opportunities such as IMBU to its invaluable users.</p>
<p>If you are a parachain team and want to bootstrap your network’s token on Mangata X, <a href="https://www.notion.so/Bootstrapping-your-token-b4bfa8629f1d4acf8ab27f540bea6a1d" target="\_blank">take a look at our Bootstrapping Guide</a>.</p>
<p>Are you a developer and building integrations? <a href="https://blog.mangata.finance/blog/2022-07-18-mangata-sdk-build-your-own-dexes-and-bots/" target="\_blank">Take a look at the Mangata SDK</a> to get started.</p>
<h2 id="join-the-parade">Join the Parade!</h2>
<p>Join us in our socials to hear about the latest developments. The next ship in the line might be closer than you think!</p>
<ol>
<li>Follow us on Twitter <a href="https://twitter.com/MangataFinance" target="\_blank">@MangataFinance</a></li>
<li>Join the <a href="https://t.me/mgtfi" target="\_blank">Telegram</a></li>
<li>Subscribe to our <a href="http://youtube.com/c/MangataFinance" target="\_blank">YouTube channel</a></li>
<li>Join the <strong>Mangata X</strong> Newsletter at <a href="https://x.mangata.finance/" target="\_blank">x.mangata.finance</a></li>
<li>Join the <a href="https://discord.gg/mangata" target="\_blank">Discord channel</a></li>
</ol>
<h2 id="about-mangata">About Mangata</h2>
<p>Mangata is the next-generation DEX of Polkadot with the vision to make tokens from all ecosystems tradable on a single DEX. It features gasless swaps, prevents front-running and MEV, and increases capital efficiency with the revolutionary proof-of-liquidity consensus. As a Layer 1 app-chain building on Substrate, it is not bound by legacy EVM restrictions and optimizes the whole ecosystem around capital efficiency and fairness. Mangata X is the DEX of Kusama that broke records when closing its crowdloan within 50 minutes.</p>
<table>
<tbody>
<tr>
<td><a href="https://mangata.finance/" target="\_blank">Website</a> </td>
<td> <a href="https://twitter.com/MangataFinance" target="\_blank">Twitter</a> </td>
<td> <a href="https://discord.com/invite/mangata" target="\_blank">Discord</a> </td>
<td> <a href="https://t.me/mgtfi" target="\_blank">Telegram</a> </td>
<td> <a href="https://www.youtube.com/c/mangatafinance/" target="\_blank">YouTube</a> </td>
<td> <a href="https://github.com/mangata-finance" target="\_blank">GitHub</a> </td>
<td> <a href="https://blog.mangata.finance/" target="\_blank">Blog</a></td>
</tr>
</tbody>
</table>Mangata TeamMangata X is about to list IMBU, the native token of the Imbue Network. Imbue is aiming to provide decentralized crowdfunding services in the Polkadot ecosystem. IMBU will be bootstrapped on the Kusama DEX with the IMBU-MGX pair on the 7th of November. The bootstrap will run for 3 days, and Mangata X users and the Imbue community will be able to join the bootstrap by providing IMBU or MGX.Council Incident Report2022-10-17T00:00:00+00:002022-10-17T00:00:00+00:00https://blog.mangata.finance/blog/investigation-of-the-council-incident<p>After we have made the <a href="https://blog.mangata.finance/blog/2022-10-08-council-incident-report/" target="\_blank">council incident</a> public and proceeded to <a href="https://kusama.polkassembly.io/referendum/237" target="\_blank">ask Kusama governance to return the stolen funds</a> by an attacker back to the Mangata X sovereign account, they have moved the funds (500k USD in value) to an <a href="https://etherscan.io/address/0x1F2fBA6ec21142cAa05fAa2F8EcA514005B77527" target="\_blank">Ethereum account</a>.</p>
<p>We have filed a criminal notice with the police. An investigation on the attacker is ongoing. We have handed over evidence of the IP addresses involved, as well as links to centralized exchanges that the attacker has been dealing with.</p>
<p>Considering the specific actions taken in the attack, using a specific XCM transfer that uses features from the parachain system we consider the circle of possible attackers to be very small. We will use this information in the ongoing investigation.</p>Mangata TeamCouncil Incident Report2022-10-08T00:00:00+00:002022-10-08T00:00:00+00:00https://blog.mangata.finance/blog/council-incident-report<p>On 6th October 2022, Mangata X was targeted by a governance attack which resulted in attackers gaining voting rights on the on-chain Council for a brief time. The incident has since been resolved and Mangata X is fully operational and safe.</p>
<p>The type of the attack was novel. Instead of a technical hack, the attacker used a hostile takeover of the council at 4:39 AM UTC to authorize transferring KSM from the parachain sovereign account on Kusama to another Kusama account. At 18:29 PM UTC we regained control of the council and countered the actions taken by the attackers in full.</p>
<p>11700 KSM have been stolen. We have replenished the stolen amount from our own funds to ensure continued and safe operations. No user has their funds affected. Users do not need to take any additional action.</p>
<p>Our team is in contact with relevant parties to assess this matter in the most assertive way. We will provide more information going forward - in particular how other parachains can prevent this kind of governance attack in the future.</p>
<p>We will dedicate our next Mangata Monday community call on Monday, 5pm UTC to discuss this incident with the community and talk about the way forward.</p>
<p>Remember to only trust our official channels. We will publish all relevant information on our official Twitter, Telegram, and Discord channels.</p>
<p>This post will go into the details of what happened, how we reacted and what learnings we can share with the community. Follow our socials to get updated on the progress of Mangata:</p>
<ul>
<li>Mangata Twitter: <a href="https://twitter.com/MangataFinance" target="\_blank">@MangataFinance</a></li>
<li>Mangata Telegram: <a href="https://t.me/mgtfi" target="\_blank">t.me/mgtfi</a></li>
<li>Mangata Discord: <a href="http://discord.gg/mangata" target="\_blank">discord.gg/mangata</a></li>
</ul>
<p>The attacker can reach us on Element mangata_finance, Keybase mangata_finance, or Email hello@mangata.finance</p>
<h2 id="breakdown-of-the-governance-attack">Breakdown of the Governance Attack</h2>
<p>Mangata X is based on the Substrate blockchain framework, which comes with several modules, called “pallets” out of the box. The Collective pallet is one of the standard pallets of Substrate and includes the feature that was being targeted by the attacker.</p>
<p>The Council is a feature of the Collective pallet that allows chains to organize governance around a set of elected accounts that can wield authority to enact fundamental changes on the chain, like connecting to other parachains, list new tokens, initiate bootstraps etc. This feature is enabled on Mangata X..</p>
<p>Councils can be voted on and this was the angle the attacker used to gain control of the council. The term duration after which new council members are selected is configured to be 120 days. The attacker used the first council election after the inception of the chain to get a list of accounts under their control voted into the council.</p>
<p>The attack was staged 7 and 4 days in advance by bringing council candidates in position. This was done by submitting funds to Mangata X to create and fund dedicated accounts and submit candidacies for the Council and vote for the candidates.</p>
<p>After winning the election, the attacker immediately created a <a href="https://mangatax.subscan.io/council/0" target="\_blank">Council motion</a> to perform a specially crafted XCM message to transfer 11700 KSM from the parachain Sovereign Account on Kusama to <a href="https://kusama.subscan.io/account/5FjTduFGunthzB8FkG4qMJgH6YwqpfK6jqBuAtGuQc5yrMmB" target="\_blank">this account</a>.</p>
<p>For details, see Appendix 1 - Timeline of the Attack</p>
<h2 id="actions-taken-by-our-team">Actions taken by our Team</h2>
<p>This chapter describes what we have done to correct the issue.</p>
<h3 id="regaining-control-of-the-council">Regaining Control of the Council</h3>
<p>Sudo removed the attackers accounts from the council and instated an honest council: <a href="https://mangatax.subscan.io/extrinsic?address=&module=sudo&call=all&result=all&signedChecked=signed%20only&startDate=2022-10-06&endDate=2022-10-06&startBlock=&timeType=date&version=9&endBlock=" target="\_blank">Filter</a></p>
<h3 id="recovery-of-funds">Recovery of Funds</h3>
<p>To ensure continued operations, we have added funds equal to the stolen amount to the Mangata X Sovereign Account on Kusama. For details, see Appendix 2 - Recovery of Funds</p>
<h3 id="correcting-chain-state">Correcting Chain State</h3>
<p>After the incident, one user tried to withdraw KSM. The transaction was successful on Mangata X but failed in Kusama due to missing funds: <a href="https://kusama.subscan.io/xcm_transfer/kusama-2110-869599-2" target="\_blank">Transfer</a></p>
<p>This resulted in a situation where the funds no longer were registered on Mangata X but also were not retrievable on Kusama. To correct the chain state, after recovering the funds, Sudo minted the KSM back to the account who lost it: <a href="https://mangatax.subscan.io/extrinsic/875602-2" target="\_blank">Extrinsic</a></p>
<p>This allowed the affected account to regain control of their KSM.</p>
<p>We are still evaluating if further actions need to be taken to correct the chain state. If this is the case, future calls by governance or a runtime upgrade will need to be enacted.</p>
<h3 id="message-to-the-recipient">Message to the Recipient</h3>
<p>We have sent a message to the attackers holding account requesting to contact us: <a href="https://kusama.subscan.io/extrinsic/14777267-11" target="\_blank">Extrinsic</a></p>
<p>We intend to get in contact with the attacker and talk about returning the funds.</p>
<h2 id="analysis">Analysis</h2>
<p>As we mentioned initially, no hack or exploit was used in this new type of attack vector. Instead, the hostile takeover of the council made this attack possible. Our codebase is safe and an independent audit by SRLabs from March till May of this year has confirmed this.</p>
<p>We consider the attack sophisticated. The attacker had to combine three elements to make it possible:</p>
<ul>
<li>Parachain mechanics</li>
<li>Governance mechanics</li>
<li>Timing</li>
</ul>
<h3 id="parachain-mechanics">Parachain mechanics</h3>
<p>The attack shows a high degree of understanding of the parachain and XCM system. The attacker <a href="https://mangatax.subscan.io/council/0" target="\_blank">crafted a special XCM message</a> to call OrmlXcm.send_as_sovereign to transfer funds from the Mangata X Sovereign Account to a holding account of the attacker.</p>
<p>A sovereign account is an account on the Kusama relay chain that is under the control of its parachain. Every parachain has such a sovereign account on the relay chain. It is a representation of the parachain on the relay chain. It is used for reserve-backed transfers of KSM between chains under the Kusama security umbrella. Whenever an account transfers funds from a chain to that parachain, those tokens get sent to the sovereign account and the parachain runtime then creates its own representation, e.g. by minting those tokens into a specific user account.</p>
<p>This very specific fact was used by the attacker to send tokens with the authority of the chain away from the sovereign account towards an account chosen by the attacker.</p>
<h3 id="governance-mechanics">Governance mechanics</h3>
<p>On-Chain Governance comes in different flavors in Substrate. There can be fully permissioned systems where a single entity holds a Sudo key. There can be a council which acts similar to a traditional multi-sig. There can be full-fledged voting by all token holders. Substrate is flexible in that it allows an arbitrary configuration of governance, with the possibility of having only some powers being delegated to a council or committee.</p>
<p>The attacker had to be aware of how on-chain governance works and what kind of attacks can be mounted from it.</p>
<h3 id="timing">Timing</h3>
<p>The window of opportunity for this attack opened up after the first term of the Council cince the chain started. The attacker started preparing the hostile takeover ahead of the end of the term and enacted the transfer of funds within minutes of the council election.</p>
<h3 id="on-the-introduction-of-governance-attacks-into-the-ecosystem">On the Introduction of Governance Attacks into the Ecosystem</h3>
<p>With new capabilities come new attack vectors. While we spent enormous amounts of effort on quality assurance to ensure our code is safe and audited, this type of governance attack is novel and deserves more awareness. Every chain can configure governance to fit their needs and this added complexity opens new doors.</p>
<p>We propose that as an ecosystem we start to develop a best practices model on how to run and configure governance that is safe. Attacks on governance require different knowledge, technical capabilities, and ressources than traditional attacks and notably open the opportunity to attack with less than 50% of stake in the network.</p>
<p>We propose that parachain teams critically reflect this new attack vector and add it to the scope of their security audits.</p>
<h2 id="appendix">Appendix</h2>
<h3 id="appendix-1---timeline-of-the-governance-attack">Appendix 1 - Timeline of the Governance Attack</h3>
<ul>
<li>2022-07-20 The Kusama account “Cj2o” is created which funds transfers to DICO, Heiko and Mangata X.
<ul>
<li><a href="https://kusama.subscan.io/account/Cj2o7CXBANuP7nGNaWxhDbbLKHPaEFvkgDEPt4sk1dPyhjd" target="\_blank">Cj2o7CXBANuP7nGNaWxhDbbLKHPaEFvkgDEPt4sk1dPyhjd</a></li>
</ul>
</li>
<li>2022-09-29
<ul>
<li>Cj2o funds the Kusama account “EwNu” to stage the attack on Mangata X.
<ul>
<li><a href="https://kusama.subscan.io/extrinsic/14661880-4" target="\_blank">Funding Transaction</a></li>
<li><a href="https://kusama.subscan.io/account/EwNudmS8ddxarGsDFaibGz5AYhNemcBNKqcUVE4YtPLYueY" target="\_blank">EwNudmS8ddxarGsDFaibGz5AYhNemcBNKqcUVE4YtPLYueY</a></li>
</ul>
</li>
<li>The Mangata X Staging account “5ERm” gets funded: <a href="https://mangatax.subscan.io/account/5ERmFKRZWGd2qCTRSYmfhKd51xR8r6nzuwzs5px756Aqoogg?tab=xcm_transfer" target="\_blank">5ERmFKRZWGd2qCTRSYmfhKd51xR8r6nzuwzs5px756Aqoogg</a></li>
</ul>
</li>
<li>2022-10-02
<ul>
<li>The Mangata X Staging account funds several accounts to become council members</li>
</ul>
</li>
<li>2022-10-06
<ul>
<li>The attacker proposes Council executes sudo to withdraw 11,700 KSM to a holding account on Kusama
<ul>
<li><a href="https://mangatax.subscan.io/council/0" target="\_blank">Council Motion #0</a></li>
<li><a href="https://mangatax.subscan.io/extrinsic/866445-2" target="\_blank">Proposal Extrinsic</a></li>
<li><a href="https://mangatax.subscan.io/extrinsic/866468-2" target="\_blank">Closing Extrinsic</a></li>
</ul>
</li>
</ul>
</li>
<li>Account with stolen KSM on Kusama: <a href="https://kusama.subscan.io/account/5FjTduFGunthzB8FkG4qMJgH6YwqpfK6jqBuAtGuQc5yrMmB" target="\_blank">5FjTduFGunthzB8FkG4qMJgH6YwqpfK6jqBuAtGuQc5yrMmB</a></li>
</ul>
<h3 id="appendix-2---recovery-of-funds">Appendix 2 - Recovery of Funds</h3>
<ul>
<li>Funded the Sovereign Account with sufficient KSM:
<ul>
<li><a href="https://kusama.subscan.io/extrinsic/14766638-3" target="\_blank">https://kusama.subscan.io/extrinsic/14766638-3</a></li>
<li><a href="https://kusama.subscan.io/extrinsic/14769058-2" target="\_blank">https://kusama.subscan.io/extrinsic/14769058-2</a></li>
<li><a href="https://kusama.subscan.io/extrinsic/14769254-2" target="\_blank">https://kusama.subscan.io/extrinsic/14769254-2</a></li>
<li><a href="https://kusama.subscan.io/extrinsic/14769261-3" target="\_blank">https://kusama.subscan.io/extrinsic/14769261-3</a></li>
<li><a href="https://kusama.subscan.io/extrinsic/14769268-10" target="\_blank">https://kusama.subscan.io/extrinsic/14769268-10</a></li>
<li><a href="https://kusama.subscan.io/extrinsic/14769355-3" target="\_blank">https://kusama.subscan.io/extrinsic/14769355-3</a></li>
</ul>
</li>
</ul>Mangata TeamMangata Releases Bootstrap Feature to Support New Token Launches2022-08-24T00:00:00+00:002022-08-24T00:00:00+00:00https://blog.mangata.finance/news/mangata-releases-bootstrap-feature-to-support-new-token-launches<p><strong>Subtitle: Partners are ready to bring their tokens to Mangata</strong></p>
<p>Mangata Finance has released its new bootstrap feature. This new building block will allow any crypto project to launch a new token with deep liquidity on Polkadot and Kusama. It will enable upcoming Web3 projects to get their token into the hands of users, expose it to the market, and discover its value. Mangata’s partner <a href="https://blog.mangata.finance/blog/2022-07-19-the-tur-mgx-bootstrap/" target="\_blank">OAK Network is the first to use the feature to bootstrap their TUR token on the Kusama DEX Mangata X</a>.</p>
<p>The new feature has been battle-tested in the summer with the <a href="https://blog.mangata.finance/news/2022-06-15-mangata-x-concludes-bootstrap-with-13-million-fdv/" target="\_blank">launch of Mangata X’s own token, MGX</a>. A few cutting-edge Polkadot projects have already signaled interest to bootstrap their tokens. “Polkadot parachains will revolutionize crypto. By enabling projects to bootstrap liquidity on Mangata X, we will introduce them to the next wave of crypto users.”, says Peter Kris, founder of Mangata Finance.</p>
<p>This latest update to Mangata X puts the Kusama DEX on course to connect to all major chains of the Polkadot ecosystem to create the most optimized trading experience on any DEX. Mangata is steadily progressing on its roadmap to launch on Polkadot. Upcoming features include <a href="https://blog.mangata.finance/blog/2021-11-08-proof-of-liquidity/" target="\_blank">Proof-of-Liquidity</a>, gasless swaps, and private transactions in the mempool. These will add to Mangata’s tech stack of unique solutions like the already delivered <a href="https://blog.mangata.finance/blog/2021-10-10-themis-protocol/" target="\_blank">front-running prevention</a>, <a href="https://blog.mangata.finance/blog/2022-03-21-algorithmic-buy-and-burn/">algorithmic buy & burn</a>, and <a href="https://blog.mangata.finance/blog/2022-07-19-time-incentivization/" target="\_blank">time incentivization</a>.</p>
<p>Projects interested to bootstrap their token can start <a href="https://www.notion.so/Bootstrapping-your-token-b4bfa8629f1d4acf8ab27f540bea6a1d" target="\_blank">here</a>.</p>
<h2 id="about-mangata">About Mangata</h2>
<p>Mangata is a next-generation DEX with the mission to make tokens from all ecosystems tradable on a single DEX. It features gasless swaps, prevents front-running and MEV on the consensus level without additional fees, and secures the network with the revolutionary proof-of-liquidity consensus. As a Layer 1 app-chain building on Substrate, it is not bound by legacy restrictions and can customize the rules of the chain to optimize the whole ecosystem around capital efficiency and fairness. Mangata X is THE upcoming Kusama DEX that broke records when closing its crowdloan within 50 minutes.</p>
<p><a href="https://mangata.finance/" target="\_blank">Website</a> | <a href="https://twitter.com/MangataFinance" target="\_blank">Twitter</a> | <a href="https://discord.com/invite/mangata" target="\_blank">Discord</a> | <a href="https://t.me/mgtfi" target="\_blank">Telegram</a> | <a href="https://www.youtube.com/c/mangatafinance/" target="\_blank">YouTube</a> | <a href="https://github.com/mangata-finance" target="\_blank">GitHub</a> | <a href="https://blog.mangata.finance/" target="\_blank">Blog</a></p>
<h3 id="make-sure-to-stay-in-the-loop">Make sure to stay in the loop!</h3>
<ol>
<li>Follow us on Twitter: <a href="https://twitter.com/MangataFinance" target="\_blank">@MangataFinance</a></li>
<li><a href="https://t.me/mgtfi" target="\_blank">Join the Telegram</a></li>
<li>Subscribe to our YouTube channel: <a href="https://www.youtube.com/c/MangataFinance" target="\_blank">youtube.com/c/MangataFinance</a></li>
<li>Join the <strong>Mangata X</strong> Newsletter at <a href="https://x.mangata.finance/" target="\_blank">x.mangata.finance</a></li>
<li><a href="https://discord.gg/mangata" target="\_blank">Join the Discord</a></li>
</ol>Mangata TeamPartners are ready to bring their tokens to Mangata. Mangata Finance has released its new bootstrap feature. This new building block will allow any crypto project to launch a new token with deep liquidity on Polkadot and Kusama. It will enable upcoming Web3 projects to get their token into the hands of users, expose it to the market, and discover its value. Mangata's partner OAK Network is the first to use the feature to bootstrap their TUR token on the Kusama DEX Mangata X.Time Incentivization - Attract calm liquidity to create reliable markets2022-07-19T00:00:00+00:002022-07-19T00:00:00+00:00https://blog.mangata.finance/blog/time-incentivization<p>This article introduces time incentivized liquidity mining - our solution to attract calm liquidity for predictable markets. You can also listen to the recording of a previous Mangata Monday that is focused on Time Incentivization.</p>
<p>You can also watch the article as video:</p>
<iframe width="720" height="405" src="https://www.youtube.com/embed/6YkthwEAkmc" title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen=""></iframe>
<h2 id="warships-in-a-heavy-storm">Warships in a Heavy Storm</h2>
<p>A rough day on the sea. Heavy clouds lie over the scene. Strong waves are smashing against ships that try to stay afloat. The crew was in panic, turbulences everywhere. Would you go for a swim?</p>
<p><img src="/assets/posts/warships-in-a-heavy-storm.png" alt="**[Ludolf Bakhuizen: Warships in a Heavy Storm](), ca. 1695**" /></p>
<p><strong><a href="https://commons.wikimedia.org/wiki/File:Schepen_aan_lager_wal_-_Ships_running_aground_-_The_%27Ridderschap%27_and_%27Hollandia%27_in_trouble_in_the_Street_of_Gibraltar_1-3_March_1694_(Ludolf_Backhuysen,_1708).jpg" target="\_blank">Ludolf Bakhuizen: Warships in a Heavy Storm</a>, ca. 1695</strong></p>
<p>A scene that represents how many DEXes feel like today. They attract liquidity with mining incentives, but the liquidity just keeps washing from pool to pool every few days. Pools are dominated by liquidity providers that select for the highest APR without much respect for the turbulences they leave behind in pools they are leaving. This creates a lot of unpredictability and movement, making the situation for everyone else very uncertain. Will the liquidity stick or leave the DEX altogether after a few weeks when the next hottest platform opens up?</p>
<p>Protocols like OlympusDAO even named it “mercenary capital” and tried to come up with solutions against it, like protocol-owned liquidity.</p>
<p>In this article we are introducing an alternative: time incentivized liquidity mining, our solution to attract calmer liquidity and reward loyalty over time.</p>
<h2 id="design-goals-for-time-incentivized-liquidity-mining">Design Goals for Time Incentivized Liquidity Mining</h2>
<p>When we think about the ideal DEX, we are thinking about a DEX that steadily builds up liquidity on the important pools. It has the right incentives put in place to attract calm and predictable liquidity that allows users to gain trust and create an upward momentum for everyone.</p>
<p><img src="/assets/posts/salem-harbor.png" alt="" /></p>
<p><strong><a href="https://commons.wikimedia.org/wiki/File:Salem_Harbor_Fitz_Hugh_Lane.jpeg" target="\_blank">Fitz Henry Lane: Salem Harbor</a></strong></p>
<p>The ideal DEX acts like a safe harbor, protecting everyone from the force of nature to safely onboard and depart with their assets while they get ready for their next journey.</p>
<p>A DEX has to go with the flow of the market, but at the same time it can slow down the negative effects of the market by clever design. This is the starting point for time incentivized liquidity mining.</p>
<h3 id="reward-the-time-that-capital-has-worked-in-a-liquidity-pool">Reward the time that capital has worked in a liquidity pool</h3>
<p>The primary design goal is to set up liquidity mining rewards in a way that rewards loyal liquidity providers that stay longer in a liquidity pool. The liquidity should be “calmer”. We want to attract liquidity providers who are more thoughtful about where they want to stay and that is loyal to the protocol.</p>
<p>We want Mangata X to reward the amount of time that capital has spent working in a pool. The longer it worked, the more rewards it should get.</p>
<h3 id="maintain-freedom-of-liquidity-providers">Maintain freedom of liquidity providers</h3>
<p>At the same time, we need to consider the fluctuations in the market. LPs should not fear that time incentivization requires an undesirable lock-in or has too big opportunity costs. We are not friends of forcing liquidity into vaults or locking it away in other ways! Instead, we want to provide an attractive offer while maintaining the freedom of users to move their capital at any point.</p>
<h3 id="no-infinite-scaling">No infinite scaling</h3>
<p>Potential liquidity providers should not feel like they cannot catch up with the rewards that older LPs get. There should not be a situation where there are “incentive whales” that grab all the rewards from the platform. We need to find a solid middle ground of incentivizing time and inviting new players.</p>
<h2 id="approaches">Approaches</h2>
<p>It is easier to show our time incentive solution by discussing different approaches that are utilized throughout the ecosystem. From simple to more complex approaches, this section explains Mangata’s model and the process of how & why we came up with the idea.</p>
<h3 id="the-linear-approach">The linear approach</h3>
<p>The basic solution is to ramp up reward emissions over time: Give out more rewards for liquidity that has been staying in the pool for a longer amount of time. This makes it attractive to remain loyal to the pool and should incentivize providers to consider it very thoroughly before leaving the pool and giving up the accumulated progress. It also disincentivizes short-term liquidity provision, as the rewards only start to stack up later.</p>
<p><img src="/assets/posts/linear.png" alt="Linear.png" /></p>
<p>This approach can lead to two major problems: Either the rewards start so slow that they almost don’t provide anything in the beginning (carrying huge opportunity costs) or they get big very fast and lead to hyperinflation of the protocol token.</p>
<p>A second major issue is that it keeps scaling infinitely, creating incentive whales that take most of the incentives, and leaving almost nothing for new liquidity providers. In this situation, the pool might even slowly die off because no new liquidity providers would be incentivized to join the pool.</p>
<h3 id="the-linear-with-limit-approach">The ‘linear with limit’ approach</h3>
<p>Let’s introduce a new rule and say that the rewards will hit a limit after some time.</p>
<p><img src="/assets/posts/linear-with-limit.png" alt="Linear with Limit.png" /></p>
<p>This approach keeps the advantages of disincentivizing provision for only a few days and increases rewards over time. This approach is fairer to new users since they have a chance to catch up after some time.</p>
<p>At the same time, there remain some disadvantages. One major concern with this approach is that the ramp-up time carries a lot of opportunity costs in which the rewards are only at a fraction of their eventual level.</p>
<p>We need a quicker on-ramp! This leads us to a refined approach.</p>
<h2 id="the-mangata-approach-asymptotic-reward-curve">The Mangata Approach: Asymptotic Reward Curve</h2>
<p>We are introducing an asymptotic reward curve for time incentivized liquidity mining.</p>
<p><img src="/assets/posts/time-incentivization.png" alt="" /></p>
<p>This curve offers a quick on-ramp and continually increases the rewards of senior users relative to newcomers while giving new users a chance to catch up significantly in the first few weeks. The reason is that the growth of additional rewards per time slows down as it approaches its full capacity.</p>
<p>Mangata X asymptotic reward curve is configured to reach <strong>>90% utilization within 8 weeks</strong>, allowing users to onboard quickly. While disincentivizing the short-term provision, the curve rewards loyalty since it infinitely increases.</p>
<h2 id="scenarios">Scenarios</h2>
<p>Let’s put these in practical examples to provide a better understanding of what these mean for the liquidity providers and explain the effects of how the Mangata approach plays out further.</p>
<h3 id="later-user-joins">Later user joins</h3>
<p>This chart compares two users. The first user joins the pool on day zero and the second one joins after a month. Let’s assume they are providing the same amount of liquidity, hence they have the same curve. But since the second user joins the pool later, the second user will always be behind the first user. But the difference shrinks over time.</p>
<p><img src="/assets/posts/time-incentivization-later.png" alt="" /></p>
<h3 id="adding-liquidity">Adding liquidity</h3>
<p>In this example, the user adds the same amount of liquidity on top of its initially provided liquidity after a month. Since adding liquidity after some time will create a different maximum on the curve, this design prevents a user to ramp up its percentage with a small amount of capital and farm the increased incentives by adding great sums of liquidity afterward.</p>
<p><img src="/assets/posts/time-incentivization-add.png" alt="" /></p>
<h2 id="set-sail">Set sail!</h2>
<p>Traders and liquidity providers require stability and predictability instead of unstable pools with slippage. Mangata X incentivize those users who stick with the protocol in order to create stable pools and reward our early supporters for their loyalty. Time Incentivization rewards long-term liquidity providers by establishing a fair ground for them against incentive whales that abuses high APR pools and leaves after the incentives dry up.</p>
<p><img src="/assets/posts/airwhale-claide-lorrain.png" alt="airwhale-claide-lorrain.png" /></p>
<p><strong><a href="https://en.wikipedia.org/wiki/The_Embarkation_of_the_Queen_of_Sheba" target="\_blank">Claude Lorrain: Seaport with the Embarkation of the Queen of Sheba</a></strong></p>
<h3 id="stay-in-the-loop">Stay in the loop!</h3>
<ul>
<li>Get in contact with other <a href="https://discord.gg/YUgHEx6R">#developers</a> (<a href="https://discord.gg/YUgHEx6R">https://discord.gg/YUgHEx6R</a>){:target=”_blank”} at Mangata Discord.</li>
<li>Follow us on Twitter: <a href="https://twitter.com/MangataFinance" target="\_blank">@MangataFinance</a></li>
<li><a href="https://t.me/mgtfi" target="\_blank">Join the Telegram</a></li>
<li>Check out (<a href="https://github.com/mangata-finance/mangata-sdk">https://github.com/mangata-finance/mangata-sdk</a>){:target=”_blank”} on Github.</li>
<li>Subscribe to our YouTube channel: <a href="https://www.youtube.com/c/MangataFinance" target="\_blank">youtube.com/c/MangataFinance</a></li>
</ul>
<h2 id="about-mangata">About Mangata</h2>
<p>Mangata is a next-generation DEX with the mission to make tokens from all ecosystems tradable on a single DEX. It features gasless swaps, prevents front-running and MEV on the consensus level without additional fees, and secures the network with the revolutionary proof-of-liquidity consensus. As a Layer 1 app-chain building on Substrate, it is not bound by legacy restrictions and can customize the rules of the chain to optimize the whole ecosystem around capital efficiency and fairness. Mangata X is THE upcoming Kusama DEX that broke records when closing its crowdloan within 50 minutes.</p>
<p><a href="https://mangata.finance/" target="\_blank">Website</a> | <a href="https://twitter.com/MangataFinance" target="\_blank">Twitter</a> | <a href="https://discord.com/invite/mangata" target="\_blank">Discord</a> | <a href="https://t.me/mgtfi" target="\_blank">Telegram</a> | <a href="https://www.youtube.com/c/mangatafinance/" target="\_blank">YouTube</a> | <a href="https://github.com/mangata-finance" target="\_blank">GitHub</a> | <a href="https://blog.mangata.finance/" target="\_blank">Blog</a></p>Mangata TeamToday, we are giving builders a new tool to start using the DeFi legos that Mangata X has to offer. We are releasing the Mangata SDK 1.0, the same software package that our team is using to build the Mangata X trading app. With this SDK (Software Development Kit), developers will be able to directly tap into the capabilities of Mangata X: gasless swaps, front-running prevention, and private transactions. This allows them to create their own trading bots, DEX interfaces, wallets, and apps.