Introducing Mantra Daos’ Platform
While major financial institutions reported very positive earnings in the last few weeks, trust in the legacy system is low. One major reason is the lack of transparency and accessibility of many products. Recently, we’ve seen big banks start offering Bitcoin services to their wealthy clients, and many see that as a good sign for the overall market maturity. Which might be, but anyone else is better off just buying Bitcoin themselves (if JP Morgan keeps your private key, it’s their crypto — not yours).
Additionally, many developing countries are experiencing high inflation, triggering citizens to look for alternative assets. The advent of DeFi has brought a whole range of new, trustless platforms into the blockchain ecosystem. DeFi promises to be more inclusive, trustless, and transparent. Still a nascent industry, it has grown tremendously over the last year and is currently locking in more than $73 billion in value, according to DeFi Pulse. Nevertheless, this can’t obscure that DeFi is still plagued by some of the same problems blockchain is facing, including poor user experience and a lack of interoperability.
Enter Mantra DAO
Mantra DAO proposes a paradigm shift to the way existing economic organizations work by introducing an entirely community-led platform that its token holders control — giving them complete autonomy. It’s a fully integrated ecosystem of DeFi services running on an interoperable tech stack. The underlying blockchain is called Rio Chain, which is built on a substrate of the Polkadot ecosystem. This setup allows for high scalability, security and, more importantly, enables easy access to the whole Polkadot ecosystem. Rio chain has been audited by Certik and allows different types of organizations with users across different blockchains to access the Mantra Dao system.
Partners of Mantra DAO include Kenetic, Plutus VC, Genesis Block, and Moonrock Capital, to name a few.
Key Features of Mantra DAO
Being part of the Polkadot ecosystem enables the Mantra DAO platform to benefit from connecting users from different blockchain ecosystems. So far, most platforms are limited to just the assets that are ERC-20. Things look slightly different on Mantra DAO.
- Staking: Users can stake various assets using mined using Proof-of-Stake (POS) or Delegated Proof-of-Stake (dPOS). Mantra DAO offers a secure, non-custodial environment so that traders are at all-time in control over their assets. Currently, Staking is supported for Kusama, Polkadot, and Mantra Dao’s native currency: OM. The team is planning to add further assets, including tezos, Cardano, eos, and Tron.
- Lending: Mantra DAO uses open-source and proprietary lending protocols, which allow traders to lend assets cross-chain and earn interest on their loans.
- Borrowing: Unlike other borrowing platforms, due to the interoperability of Mantra, DAO borrowers can deposit various assets to take out loans at low interest rates.
- Karma Protocol: The Karma protocol is a reputation mechanism that works similarly to credit scores in the financial legacy system. By making positive contributions to the Mantra DAO ecosystem, participants can improve their Karma, allowing them to access various benefits such as lower interest rates on loans or higher staking rewards.
- Mantra Pool: The pool is a perpetual savings game. Mantra DAO users can enter the game for a chance to win some crypto. The prizes are paid out from the Mantra DAO foundation’s staking rewards, and winners are selected randomly. To enter the pool, participants have to burn a little OM.
While the Mantra DAO foundation is initially overseeing the development of the community and ensuring intangible assets such as trademarks and intellectual property, the long-term goal is to give up control entirely to token holders. The native currency of the Mantra DAO platform: OM will play a crucial role during but even before the transition.
The token has 3 main utilities:
- Staking and lending: users can either stake their OM tokens and earn further OM on their holdings or decide to borrow or lend.
- Ownership & Governance: token holders can vote on decisions regarding updates and features from setting interest rates on loans, collateralization ratios (the ratio of collateral deposited to the value of a loan), or the level of ecosystem grant allocation.
- Reputation: OM holders can increase their reputation by using the Karma Protocol and then benefit from lower interest rates, free access to the Mantra pool, and more.
While DeFi is still dominated by protocols running on Ethereum, the Polkadot ecosystem is gaining as users realize the lack of interoperability and are unwilling to pay the high gas fees. Mantra DAO is positioned to capture those participants looking for a platform where they can be part of decisions and benefit from their positive contributions. As an interoperable protocol, we’d expect Mantra DAO to benefit from integrating further assets to stake and the ensuing network effects.
Mantra DAO’s OM token is now trading on Bitcoin.com Exchange with BTC pairs.