Mangata X, a community-controlled decentralized exchange (DEX) that seeks to address some of the pain points that keep flaring up in the crypto industry, is planning to hold a liquidity bootstrapping event on June 8th. The Kusama DEX unveiled this news, noting that this event will follow the unlocking of 1.1 million KSM, the biggest release in the history of the Kusama ecosystem.
According to the press release, the 1.1 million KSM represents almost 10% of the token’s supply and is worth approximately $100 million. With such a hefty amount of KSM coming back into circulation, KSM holders will try to put their unlocked funds into profitable use.
To seize this opportunity, Mangata is offering KSM holders an opportunity to provision their unlocked funds at the liquidity bootstrapping event. The platform’s Proof of Liquidity mechanism reuses liquidity to ensure chain security. By creating deep liquidity pools, the platform increases capital efficiency and allows stakers to get double rewards.
Users that choose to contribute their funds in Mangata’s liquidity pool will get both staking and trading rewards, increasing the growth potential of their investments significantly.
Apart from its Proof of Liquidity mechanism, the Mangata blockchain offers gas-free swaps. This opens up new strategies like dollar-cost averaging in a decentralized environment. Additionally, the network offers faster settlement times at no additional cost. The blockchain maintains fixed fees, provides greater control over trading costs, and increases arbitrage opportunities while preventing front-running.
This news comes after Mangata recently raised $4 million in an equity round that valued the company at $60 million. The company secured this amount shortly after the launch of its first blockchain on the Kusama network. Investors in the round included Altonomy, Polychain, TRGC, Signum Capital, IVC, Figment, ZMT Capital, Paribu Ventures, and AngelDAO.
