*Market making auto corrected to mango making funds
Bootstrapping liquidity by rewarding all the liquidity providers for the entire price range is capital intensive and building complex financial products like perpetuals/futures on different variations of x*y=k is just stretching the limits of the simple market maker formula. Moving forward markets need to be more efficient to replace current CEXs and the on-chain central limit order book is the best thing we have, Project Serum has proven it and now Mango markets will demonstrate the efficacy of it by running perpetual markets on the on-chain order book system.
Bootstrapping liquidity on Perps market
The team at Mango have decided to take a unique approach to incentivize liquidity providers for their perps market and it seems like the days of lazy lp’ing are over. If you want to farm those sweet $MNGO tokens you better do some real work by keeping the bid-ask spread in check.
Market making on a DEX is a whole new ballgame. It requires a significant amount of expertise and capital to do efficient market making, not to mention the cost of sending thousands of instructions to the blockchain every day.
With Investin funds :
1. Managers/traders/quants will be able to access unlimited amount of capital to market make in a decentralized and non-custodial manner.
2. Socialise the cost of sending market-making instructions and earn more $MNGO rewards.
3. Investors can passively earn mango rewards without having to market make themselves. The vaults would be completely non-custodial and investors can withdraw their capital anytime (along with the mango accrued).
Basically, these funds are like Yearn Vaults that are actively managed by a market making bot run by fund managers to harvest much of the reward tokens.
Interested in running your bots to farm $MNGO join our discord and we can get you started with these funds on Devnet!
💬 Join Us!
- Join discussion in our Discord at https://discord.gg/Yf54h9B
- Don’t miss any update by following our twitter at https://twitter.com/Investin_pro
- Telegram group @ https://t.me/Investin_pro1
