Solana-based DEX Mango Markets is all set to wind down its operation on Monday, January 13, 2025.
Background
- Owing to an SEC settlement, Mango's governance DAO agreed to destroy MNGO tokens and delist them from all exchanges
- Back in October 2022, Mango Markets was exploited
- Over $110 million was drained from the platform
- The price of its native MNGO token was manipulated on other exchanges
- In H2 last year, the DAO agreed to settle an SEC lawsuit that charged Mango DAO and Mango Labs for selling unregistered crypto assets and acting as an unregistered broker
Why should you pay attention?
- Proposals to modify Mango Markets' interest rates and collateral requirements in order to sidetrack borrowing and lending will become executable today
- Mango v4 will optimize for 0.1% of deposits lent out, not 50%
- The team asked users to expect interest hikes for SOL, USDC, USDT, ETH, MSOL, mangoSOL, and INF
- Alongside, collateral requirements will notch up by 10x for new positions
Who said what?
- In a post on X, the Mango team posted,
“Mango Markets will be shutting down. It is time for users to close their positions”
- They added,
“Mango v4 & Boost are winding down. Most borrowing on Mango will be economically unviable going forward. Proposals are live & become executable on January 13, Monday 8 PM UTC”
- As of press time, both proposals had already garnered unanimous support
Zooming out
- Under Gary Gensler’s regime, the SEC targeted several firms from the crypto space time and again
- Coinbase, Binance, Unsiwap, OpenSea and Ripple Labs have been a few of the many victims
