Mangata X Integrates aUSD as The Default Stablecoin for its Kusama-based Parachain

Published in

Acala

4 min readApr 25, 2022

Acala is excited to announce Mangata Finance will integrate aUSD as the default stablecoin for its upcoming Kusama-based parachain, Mangata X. Mangata X plans to leverage aUSD to support their novel Proof-of-Liquidity consensus mechanism, inviting deep liquidity and eliminating the issue of locked capital. aUSD will also be the primary stablecoin option for all Mangata X liquidity pools.

Meet Mangata Finance

Mangata Finance is launching Mangata X, a Kusama-based decentralized exchange parachain, facilitating easy and secure trading for Ethereum and Polkadot. The prohibitions and limitations of existing decentralized trading options inspired the Mangata team to create an application-specific parachain providing a DEX with an emphasis on community. Mangata X tackles DEX expenses and unfair practices to deliver a community and user-centric trading experience.

Mangata X users enjoy low fixed fees, front-running protection, and miner extractable value (MEV) prevention. Mangata X also acts as a bridge between Polkadot and Ethereum assets; its cross-chain bridges provide the discovery of popular low caps across both networks.

Mangata X’s Proof-of-Liquidity institutes a new capital efficiency mechanism over existing Proof-of-Stake platforms. The liquidity staked by Mangata X users is utilized in the Mangata X DEX, resulting in:

Deep liquidity pools
Improved capital efficiency
Double rewards for stakers on Mangata

MGX is the native Mangata X token, acting as the base layer of liquidity that secures the network. Eighty percent of MGX tokens will be distributed to the community.

New Capital Efficiency for Staking Assets

Accessing DeFi services free from external interference remains problematic due to dishonest nodes, unethical practices, and front-running bots. Users lose money on transactions as third parties exploit their DEX positions, resulting in expensive gas fees at an inconvenience for DeFi users.

Mangata X introduces a no-gas DEX, allowing a safe cushion for trade execution free from nefarious actors. Users also receive free protection from front-running bots and MEV.

aUSD on Mangata X to Create Economic Powerhouse

Mangata’s aUSD integration offers a hedge against market volatility. MGX-aUSD encourages users to stake once, earn twice and enjoy limited downside risk. aUSD uses a multi-collateral backing mechanism to create a stablecoin pegged to USD.

Leveraging aUSD’s reach and accessibility creates liquidity in the Mangata ecosystem, providing stable trading options on Ethereum, Polkadot, Kusama, and supported protocols. Integrating aUSD into Mangata will attract increased liquidity providers to the ecosystem, creating deeper liquidity pools with greater user benefits.

$250M aUSD Ecosystem Fund

If you are a developer interested in building a project that drives yield or utility of the aUSD stablecoin on Acala or any other parachain, apply for funding from the $250 aUSD Ecosystem Fund. The aUSD Ecosystem Fund is part of the broader Acala Ecosystem Program, offering liquidity for new projects, Acala Foundation Grants, engineering support, and other support to ensure the success of the aUSD ecosystem.

Build on Acala

If you’re a team looking to build on Karura or looking for support from Acala Grants, please get in touch with our team to chat about how we can support you.

About Mangata

Mangata is a next-generation DEX that makes tokens from all ecosystems tradable on a single exchange. It features gasless swaps, prevents front-running and MEV without additional fees, and secures the network with the revolutionary proof-of-liquidity consensus. As a Layer 1 app-chain, it is not bound by legacy restrictions and can optimize from the ground up for capital efficiency and fairness. Mangata X is THE upcoming Kusama DEX that broke records when closing its crowdloan within 50 minutes.

Website | Twitter | Discord | GitHub | Blog

About Acala

Acala is a decentralized finance network powering the aUSD ecosystem. The core product, Acala USD (aUSD), is a decentralized, multi-collateral, crypto-backed stablecoin serving as the native stablecoin of the Polkadot ecosystem. Acala’s Ethereum-compatible blockchain has built-in DeFi protocols for application developers to leverage, including a trustless staking derivative (liquid DOT — LDOT), a decentralized exchange, and the EVM+, a hybrid EVM offering fully Ethereum-compatible development environment plus full compatibility with Substrate.