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Mango Markets Overview
protocol
March 24, 2022
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Mango Markets Overview

Solana’s lightning-fast architecture enables efficient financial markets that combine the capabilities of traditional finance with decentralized solutions. Mango Markets is a feature-rich trading platform built in 2021 on the Solana network which offers a low-fee solution for spot and perpetual trading.

In today’s article, we’re going to talk about this platform and its available features, as well as look at the aspects of the protocol that can help you profit — including the DeCommas experience.

What is Mango Markets?

Mango Markets is a decentralized protocol which provides a set of solutions and tools for efficient trading and asset management. The platform offers lending options, spot and margin trading solutions, and perpetual futures, as well as built-in exchange functions and money management tools.

The protocol is managed by the Mango DAO organization, utilizing the MNGO token. It is a native SPL standard token on the Solana blockchain which is traded on multiple DEX and CEX platforms. The token is used to offer and vote on the protocol changes. MNGO tokens are released on the market via the reward mechanism for using the platform. All users who trade on the spot and open-ended markets receive interest from the DAO vault, depending on the volumes and number of trades.

Perpetual futures contracts are available for online trading through the order book. To maintain the liquidity of the PERP markets, the protocol distributes MNGO tokens to all market makers, encouraging them to open positions and provide sufficient liquidity.

Features

Mango Markets offers lending tools and margin trading opportunities. Markets are also presented in the form of perpetual contracts on the most popular trading pairs. Many popular Solana ecosystem wallets are available to connect, as well as a multi-currency Bitpie wallet and a mobile storage app from Huobi. If you are still not using a wallet, you can choose a suitable solution by referring to the Solana ecosystem wallets overview.

Mango uses Serum DEX to provide liquidity for spot and margin markets. The platform offers limit and market orders, as well as up to 10x leverage. For perpetual futures, Mango has its own order book. Users can open positions with up to 20x leverage, and the following order types are available for trading:

  • Limit Order
  • Market Order
  • Stop-Loss
  • Stop-Limit
  • Take-Profit
  • Take-Profit-Limit

Many of the most popular trading pairs with different margin opportunities are available for trading:

  • Spot Markets

  • Futures Markets

As we already mentioned, Mango DAO manages a fund, which is used to insure users’ deposits. At the time of writing, more than $150 million is locked on the platform, according to DefiLama.

Mango Stats states that over $29 million is locked in lending, and this amount is rapidly growing. Lending opportunities have become widespread for the efficient use of capital. In parallel, related opportunities are forming, such as those related to the differences between interest rates on different platforms, which we here at DeCommas are trying to use and apply to build neutral strategies.

The Stats section provides users with a wealth of useful data on market conditions, fundings, and interest rates for the assets available on the platform. The interface also offers a handy calculation for risk assessment. This tool is currently in test mode, and provides risk calculations for various margin conditions.

Mango + DeCommas

Mango Markets provides perpetual futures for trading with up to 20x leverage, which opens up wide opportunities to profit from funding farming, arbitrage, credit rates, and deposits, enabling users to implement neutral strategies. For this purpose, delta-neutral or basis trading strategies associated with the opening of two opposite trading positions on different open-ended markets are used. Under such conditions, the losses from one position are compensated by profits from the other, and profits are taken due to market inefficiencies, such as the difference of fundings on different trading floors.

Delta-neutral strategies allow you to profit irrespective of the market movements, and are safer and offer higher independence. We have already discussed Basis Trading approaches in more detail in one of our past articles: New Meta: Automating Basis Trading.

We recently introduced an update to our platform, where our new product based on a single-click application of neutral strategies is also available. Such an approach is implemented on our DeCommas platform in the Earn section, based on Perpetual Protocol v2. The features of our new tool are currently available in test mode.

We have developed this strategy based on Mango Markets for Riptide Hackathon, and plan to introduce its test mode version in the near future!

Conclusion

Mango Markets is a reliable and promising platform which offers tons of opportunities for both new and professional traders alike. The platform is developing and scaling, offering more and more financial instruments and possibilities. The platform already offers many high-performance solutions, which traders use to implement flexible and efficient strategies — and now, thanks to DeCommas, neutral basis strategies.

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