Kusama-backed DEX Mangata X to Launch Bootstrapping on June 8
2022.06.07 13:11
Kusama-backed DEX Mangata X to Launch Bootstrapping on June 8
- Mangata X, a community-owned DEX on Kusama, will launch its bootstrapping event on June 8.
- The Kusama DEX will bootstrap the first liquidity pool for Mangata X’s native token, MGX.
- KSM holders who will stake their coins will receive liquidity mining incentives, staking rewards, and trading rewards.
Mangata X, a community-owned decentralized exchange (DEX) on Kusama, has revealed that its liquidity bootstrapping event will happen on June 8.
According to the information shared with CoinQuora, the Kusama DEX will bootstrap the first liquidity pool for Mangata X’s native token, MGX. Notably, a liquidity bootstrapping event happens when a DEX wants to introduce new tokens without bot manipulation and create fair conditions for price discovery.
This announcement comes on the heels of Kusama unlocking around 1.1 million KSM from staking and crowdloans earlier this May. The number represents 10% of the total token supply, worth approximately $100 million based on the price of KSM at the time of writing.
The Mangata team purposely timed the liquidity bootstrapping event to allow multiple users to stake their recently unlocked KSM to Mangata X’s new pool because of the increase in KSM liquidity.
Mangata X also released a new consensus mechanism called proof-of-liquidity that reuses liquidity to maintain chain security and enables users to “stake once, [and] earn twice” as much. The mechanism also creates deeper liquidity pools and guarantees capital efficiency, generating two streams of rewards.
Holders of KSM who will stake their coins with Mangata X’s new liquidity pool will receive liquidity mining incentives, staking rewards, and trading rewards.
In March 2022, Mangata X was launched as a parachain on Polkadot’s Canary network Kusama. The Mangata team previously revealed that it initially planned to launch only on Polkadot but decided to expand to Kusama. The platform boasts of its prevention of maximal extractable value (MEV) and the use of a proof-of-liquidity mechanism.
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