Mangata X Crowdloan Announcement

5 min readJan 17, 2023

- Be Ready!
— Rewards
— Timeline
— What is a Crowdloan?
— The First Mangata X Crowdloan
— What We Built
— Further Insights
- Stay Tuned
— About Mangata

Mangata X is getting ready for another crowdloan on Kusama Network. The first Mangata Crowdloan was a massive success, both in terms of reaching the cap in record time, as well as crowdloan rewards outperforming KSM staking by 70%! Get your KSM ready to support Mangata and earn infinite rewards. The community can support Mangata X through both usual and liquid crowdloan options. The minimum reward will be 5000 MGX for each KSM contributed, and the auction starts on the 20th of January. Keep reading for additional information.

Be Ready!

The Parachain lease of Mangata X is coming to an end soon, and it is required to renew the lease to ensure the safety of the network. For this reason, we are starting a new crowdloan campaign on the 20th of January 2023. But this time, there will be two alternative ways to crowdloan. Along with the usual crowdloan mechanisms of Polkadot & Kusama, the community can also support Mangata X crowdloan through Bifrost’s SALP system. It provides the opportunity to participate in crowdloan without KSM lock-up. This second method allows our community to keep their assets liquid and earn extra MGX by providing vsKSM liquidity on Mangata X.

Rewards

There is a total reward pool of 30 million MGX tokens for this crowdloan. The reward pool will be split by between contributors, with a total contribution cap of 6000 KSM. If the Crowdloan cap is reached, minimum rewards will be 5k MGX per KSM contributed, which is a 14% premium over the opportunity cost of KSM staking.

There are two different ways to contribute to the Mangata X Crowdloan. Only one of the two can be chosen.

Through Mangata Referral Program:

25% if you use a referral
25% if you refer someone (if someone referred gets 100 MGX base reward, you get 25 MGX)

2. Through Bifrost SALP (Liquid Crowdloan)

30% bonus for our supporters that use the Bifrost SALP

Rewards will be paid out after all calculations are done and governance approves the payout. The Crowdloan supporters will receive 50% of their rewards immediately. The remaining rewards will vest linearly over the remainder of the Parachain lease. We have limited the power to refer someone to existing Mangata users to prevent self-referrals.

📒 Learn how to contribute to a Crowdloan with this step-by-step guide https://mangata-finance.medium.com/how-to-participate-in-the-crowdloan-2d63a483fd46 📒

Timeline

Mangata X will compete during the four upcoming auctions:

First auction 20.01.2023
Second auction 27.01.2023
Third auction 03.02.2023
Fourth auction 10.02.2023

We are confident that Mangata X will secure one of these slots. In the unexpected outcome of not getting a slot, the contributed KSM will be permisionlessly returned to the accounts of our supporters.

Keep in mind, Mangata aims to be the #1 DEX on Polkadot, and we will never forget our frens who supported us on this journey.

What is a Crowdloan?

In the Polkadot and Kusama ecosystems, projects can only take advantage of the shared security by becoming a Parachain. To become a Parachain, projects compete by bidding in auctions for Parachain lease offerings to acquire new slots or extend their existing leases.

There are two types to fund a Parachain. Projects can either self-fund their lease or start a Crowdloan campaign and airdrop rewards to the community in exchange for their support for the auctions. A Crowdloan is a trustless mechanism, in which the community bonds (locks) their KSM for 48 weeks to support the project. The bonded KSM is returned to contributors after the successful conclusion of the lease period.

The First Mangata X Crowdloan

The first Mangata X Crowdloan was initiated in February 2022 and exceeded expectations by reaching the Crowdloan cap in just 50 minutes, breaking records in the Polkadot and Kusama ecosystems. A total of 925 users contributed 14,000 KSM, with a median contribution of 9 KSM. Given the market conditions at the time, this was a remarkable achievement.

To summarize Mangata X’s first Crowdloan:

The minimum reward of the Crowdloan was 7,449 MGX per KSM
The opportunity cost was 15% KSM staking rewards → 0.15 KSM per KSM
The ratio of MGX:KSM today → 29200:1
The opportunity cost of 0.15 KSM in MGX → 29200/0.15 → 4380 MGX
Crowdloan performance → rewards/opportunity cost → 7449/4380 = 170%

📣 The Mangata X Crowdloan outperformed KSM staking by 70%

What We Built

After the astounding achievement of the first Crowdloan, the Mangata team built and released new features non-stop during our first Parachain lease period. In these eleven months, the Mangata X trading app has been successfully launched with a liquidity bootstrap for MGX token. Soon after that, we made our bootstrap pallet available for partner projects, enabling unique Kusama Parachains like Turing Network and Imbue to bootstrap liquidity. We doubled our team size and released the Mangata SDK to support the development of the network. Finally, Mangata Council is established, and we introduced weight voting and liquidity gauges to the Polkadot and Kusama ecosystems, further improving decentralization for Mangata X.

Further Insights

Mangata crowdloan website (traditional contribution): https://crowdloan.mangata.finance/
Bifrost SALP website (liquid crowdloan): https://bifrost.app/vcrowdloan
Check out this great guest article on “How to Analyze a Crowdloan Offer” by our community member Crane
Watch the Mangata Monday video to learn more about Bifrost’s liquid derivatives
We will publish a guide on how to contribute through Bifrost SALP and use your capital efficiently by providing liquidity with your vsKSM

Stay Tuned

Follow Mangata Finance to get updated on all our latest developments:

Follow us on Twitter @MangataFinance
Join the Telegram
Subscribe to our YouTube channel
Join the Mangata X Newsletter at x.mangata.finance
Join the Discord channel

About Mangata

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.

We believe 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.

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.

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.

Join us on our mission to become the #1 DEX on Polkadot and unlock the full potential of the decentralized economy.