In the ever-growing DeFi space, differentiating a project can be difficult. Platforms are pivoting to embrace the DeFi crowd but these systems are beginning to buckle under the strain of high fees and delayed transactions. The value of crypto assets locked in the ecosystem is at an all-time high, growing to over $6 billion in August. As more people seek high yields and flexible interest rates, powerful and flexible systems need to step up to handle this demand. To fill this need, MANTRA DAO is building a new system designed to onramp both entry-level and advanced users DeFi.
For the Users
MANTRA DAO has a full suite of DeFi services for users of all levels of experience. These tools build upon systems established by projects like Maker, Compound, and Acala. On release, MANTRA DAO will offer:
- Self-Governing Organization
- Multiple Asset Staking & Lending
- Native Reward System
For those unaware, DAO stands for Decentralized Autonomous Organization. DAO’s are a governance system designed to be run by organization members in a clear, transparent manner. Not only do DAO’s give individuals more control over decisions, but they enable the community to share in the organization’s success, similar to a Co-op. In MANTRA’s system, these rewards and distributed with its native OM token.
The OM Token
Powering the MANTRA DAO network is OM, an ERC-20 token. Payments, fees, voting, and rewards are all use cases for OM. Holding OM confers specific benefits.
Staking – Users who stake their assets on MANTRA DAO will receive OM rewards in addition to their staking shares. The OM token can also be staked itself, in addition to being used as collateral for loans.
Governance – OM token holders receive voting rights on interest rates, grant allocations, and future platform implementations.
Reputation – Users can build up their reputation, or Karma, in the system by contributing to MANTRA, staking OM, voting on proposals, etc. Karma is a separate protocol that operates similarly to a credit rating in traditional finance.
Benefits of a higher Karma include higher staking rewards, better interest rates on loans, and lower staking fees. In short, having a high Karma allows users to earn more OM than those with little Karma, potentially doubling their interest.
The total token supply is limited to 888,888,888 OM. More information on the tokenomics is here.
Those who do not possess significant amounts of OM or Karma can still use the platform. Staking multiple assets is a unique and welcome feature in the DeFi space. Users with a basket of other DeFi tokens, like COMP, can stake without issue. This flexibility will likely benefit DeFi veterans.
In addition to the OM token, MANTRA DAO will also be offering a stablecoin, the USDOM. Like Maker’s DAI, USDOM will be multi-collateral, generated through Collateralized Debt Positions. It will be pegged 1:1 to the US Dollar. However, while DAI can only be backed by ERC-20 tokens, USDOM can be backed by any crypto supported by the Polkadot network. These tokens include not only ERC-20 tokens, but also BTC, ETH, XTZ, ADA, EOS, and more. Bitcoin can now be a part of the DeFi trend.
In its short time as a pubic project, Maker DAO has cultivated a keen interest from institutions. Its OM token sale was oversubscribed by 4x, with some pools selling out in minutes.
Perhaps the most exciting investor in the project is Consensus Labs; an institutional investor focused on blockchain technical platform and infrastructure.
MANTRA DAO is built on Rio Chain, a new blockchain based on Parity Substrate for the Polkadot system. It improves upon current blockchain protocols by offering increased transaction speed, interoperability, and cross-chain transactions. It can reach 3,000 transactions per second, much higher than Ethereums current threshold of 15. Furthermore, new contracts can up updated on Rio Chain without updating nodes. This flexibility makes Rio Chain ideal to handle the increased traffic anticipated to flow into the DeFi space.
MANTRA DAO is creating a DeFi protocol for the next generation of investors. With news of financial companies like Fidelity and Vanguard entering the blockchain space, it is only a matter of time before the public decides to move to DeFi. If MANTRA DAO can deliver on its promises, it may become a popular platform sooner than later.
*Disclaimer – MANTRA DAO is our Media Partner, and therefore this content is sponsored by them.