Mango Markets
Mango Markets provides a single venue to lend, borrow, swap, and leverage-trade crypto assets through a powerful risk engine.
What is Mango
Mango Markets is built on the Solana blockchain and utilises Serum DEX for spot margin trading while perpetual futures are traded on Mango Markets' own order book. Mango Markets is governed by MNGO token holders via the Mango DAO.
A More Complete Market Make
They have seen a common structure in the previous market makers, so let’s see if we can provide a nice, common approach for actual market making that allows people to write their own strategies for the interesting bits but that has most of the required code already in place.
The main design ideas behind the design are:
- Every interval, a "pulse" is sent to run the market maker code.
- The market maker is provided with relevant "live" data (like balances) but can fetch any other information it requires.
- The main pluggable component is a "desired orders builder." It looks at the state of balances, market, or other data sources, and it provides a list of BUY and SELL orders it would like to see on the orderbook.
- Another component (also pluggable) compares the desired orders with any existing orders, and decides which orders need to be placed or cancelled.
What are the different versions of Mango?
- V3 (trade.mango.markets) is the newest version of Mango Markets.
- V2 (mango.markets) supports SOL, SRM, BTC, ETH, and USDC trading, lending, and borrowing.
- V1 (usdt.mango.markets) supports BTC, ETH, and USDT trading, borrowing, and lending. SRM deposits do not count as collateral or earn interest.
How is interest calculated?
The interest rate is a function of the utilisation ratio: total borrowed by all users divided by total deposits of all users. The interest rate will increase slowly approaching a utilisation ratio of 70% but will increase rapidly above that to encourage the market to deposit more funds.