Mango
Crypto Overview
Overview
Mango Markets is a decentralized trading platform built on the Solana blockchain that allows users to trade cryptocurrencies, perpetual futures, and spot margins. The MNGO token serves as the platform's governance token, allowing holders to participate in protocol decisions and receive a share of the platform's fees.
Intended Utility
The MNGO token was designed to enable decentralized governance of the Mango Markets protocol, provide incentives for liquidity providers, and serve as collateral within the platform's lending system. Token holders can vote on protocol upgrades, risk parameters, and fee structures.
Actual Usage and Development
The platform has faced significant challenges, most notably a $114 million exploit in October 2022 when an attacker manipulated token prices to drain the protocol. This event severely impacted user trust and platform activity. Current usage primarily centers around governance voting and reduced trading volumes compared to pre-exploit levels.
Token Distribution and Founder Analysis
The initial token distribution allocated 5% to core contributors and team members, with vesting periods. The majority of tokens were distributed through a fair launch mechanism. However, the platform's security issues and the handling of the exploit recovery have raised concerns about operational management.
Revenue Model Analysis
The platform generates revenue through trading fees and liquidation fees. However, the current implementation includes interest-bearing lending and borrowing mechanisms, which raise significant Sharia compliance concerns.
Crypto Impact
To assign a comfort level investing in Mango from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to Mango.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.