Mango Markets (MNGO)

Basics

• Based in:
• Started in / Announced on:
• Testnet release:
• Mainnet release:
• Decentralized trading platform that enables cross-margin trading.

Audits & Exploits

• Bug bounty program can be found [insert here].

Bugs/Exploits

• Interestingly, the attacker was soon discovered to be Avraham Eisenberg and engaged in public discourse on Twitter.
• From Rekt (12-10-2022):

"The attacker managed to spike the price of Mango Markets’ native token MNGO and drain their lending pools, leaving the protocol with $115M of bad debt. The team's initial announcement encouraged users not to deposit, and requested that the attacker get in touch about a bounty. Strangely, they were less keen to offer a bounty when the issue was raised via the project’s Discord back in March.

The attack drained all of Mango Markets’ available borrow liquidity, with $70M remaining in the treasury. This leaves a shortfall of approximately $50M to cover the bad debt left by the incident, which the hacker is proposing to return. Their proposal suggests that Mango pay the hacker a bounty of ~$65M, and that they do not pursue any criminal investigation."

Of course the hacker also voted YES with his newly acquired MNGO tokens. The vote got approved (15-10-2022). This didn't stop Mango Labs to sue Avraham for $47M in damages (26-1-2023).

• From Blockthreat (16-9-2021):

"Patched a critical vulnerability in the token sale pool after receiving a responsible disclosure notification."

Governance

DAO

• Has Flipside as one of their professional delegates (30-11-2022).
• From TheTie (25-5-2021):

"First and foremost, the Mango Token is a governance token. After the initial distribution of tokens, the DAO will play the main role in distribution. The DAO may distribute more tokens via governance proposals. This means that token holders will have a direct impact on the protocol and have the power to update it at will. Any user that holds at least 0.1% of the Mango Token supply will have the ability to stake their tokens and can propose governance actions. These actions can be a number of different things; new asset listings, changing asset collateral factors, updating market interest rate models, and more. Every proposal is executable by code."

Token

Launch

• From CoinDesk (12-8-2021):

"At its height, investors had plowed over $500 million in USDC into the trading platform’s 24-hour sale, racing to get a share of 500 million MNGO tokens up for grabs. But much of that drained away in the final minutes of a daylong grace period that followed, leaving $70.5 million locked up in tokens."

Token Allocation

• From TheTie (25-5-2021):

1. "DAO 80%
2. Temporary Governance Fund 10%
3. Insurance Fund Sale 5%
4. Creators 5%"

Utility

• Governance and staking.

Technology

• Whitepaper can be found [insert here].
• Code can be viewed [insert here].

Implementations

• Built on: Solana

How it works

• From TheTie (25-5-2021):

"Mango intends to merge the liquidity and usability of CeFi with the permissionless innovation of DeFi, all at a lower cost to the end user than both currently provide. Users can trade with up to 5x leverage on Mango, beating the 2x leverage offered on Aave and Compound. Additionally, Aave and Compound only allow for margin trading to be done with market orders or swaps, not limit orders. This makes them useless for market makers.

Trades on Mango can be long or short, with limit orders on the Serum DEX on-chain central limit order book. There are no fees on interest, as the only fees you will pay are for trading on Serum DEX. You can provide liquidity via SRM token into a pool to reduce these fees for everyone on the platform. Trading on Mango Markets is as simple as connecting your wallet and depositing your currency. All deposits earn interest."

Oracle Method

• Pyth is mentioned as oracle (7-3-2022).

Roadmap

• Can be found [Insert link here].
• From TheTie (25-5-2021):

"Mango Perp “closed alpha”

1. Begins early June 2021 and runs for a few weeks
2. Market makers can integrate and test

Mango Perp “public beta”

1. Sale of tokens that go directly into insurance fund
2. introduces governance token

Mango DAO Launch

1. Formal on-chain governance mechanism
2. Website and forums for participation in governance
3. Further proposals to reward contributors"

Pros and Cons

Cons

• From TheTie (25-5-2021):

"Since the Mango protocol doesn’t chart any fees on interests, the protocol does not have an insurance fund. In addition to that, there is the risk of liquidation. When a margin account has negative equity, the losses are socialized among the lenders."

Team, Funding, Partners

Team

• Full team can be found [here].
• Has Flipside as one of their professional delegates (30-11-2022).

Funding

• From CoinDesk (12-8-2021):

"Raised $70 million in a token sale. The entirety of Wednesday’s funding will go to DAO’s insurance fund to secure a hefty backstop for Mango Protocol’s lenders if things go south, sources familiar with the funding round told CoinDesk."

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