Mango Markets, a decentralized exchange (DEX) on the Solana blockchain has amassed $70 million from sales of its MNGO tokens. The DEX is an early-stage project that attracted many investors and reflects the future possibilities for DeFi protocols on Solana.
On Wednesday, Solana-based exchange Mango Markets surpassed $70 million in TVL (total value locked) after the platform’s native tokens registered impressive sales.
At its peak, investors had pumped more than $500 million worth of USD coin (USDC) on the exchange to grab 500 million MNGO tokens. However, most of those gains evaporated in the final moments of the 24 hour grace period and left Mango markets with $70,462,383 in locked assets.
Currently, Mango offers three products on its platform: spot markets, decentralized lending, and a liquidator program. It is also planning to launch perpetual futures very soon.
The exchange gets liquidity from its own pool and the Serum ecosystem, which is backed by FTX CEO and founder Sam Bankman-Fried.
Mango claims to offer 5X cross-margined leverage for both makers and takers on Serum. Also, the platform’s DAO states that its tokens are intended to capitalize insurance funds, provide governance rights to its holders and incentivize liquidity for market makers.
It’s worth noting that all the proceeds from the recent raise will be diverted to insurance funds, providing a strong backup for investors if things go downhill in the future.
Mango plans to allocate 90% of its assets to governance funds, 5% to an insurance policy, and the remainder to contributor tokens.
Crypto space is brimming with so-called Ethereum killers, but Solana has emerged as a serious candidate in the category, partly due to heavy investor backing led by Bankman-Fried’s Alameda Research.
In June, the network raised $314 million from token sales to boost Solana’s DeFi ecosystem. The funding effort saw participation from Andreessen Horowitz and Polychain Capital, along with CMS Holdings, Coinfund, ParaFi, Alameda Research, and others.