MangroveDAO Polygon Testnet

Details

This article covers the launch of the Mangrove DEX on Polygon's Testnet - testnet.mangrove.exchange, while the next article will explore Kandel and Kandel-Aave, the two first on-chain AMM strategies which will be available on Mangrove.

Become an early Mangrove user and enter the Mangrove. Experience trading with an order book model, offering market and limit orders. Grab the opportunity to secure unique NFTs in quests campaign, powered by Galxe.

Mangrove 🌳 a new trading paradigm

Mangrove is an EVM-compatible, order book-based decentralised exchange protocol aimed at enhancing the DeFi trading experience. It focuses on providing flexible and reactive liquidity to address issues such as fragmented liquidity, high slippage, and under-utilised capital. Mangrove's "offer-is-code" approach allows liquidity providers to create custom smart-contract offers, enhancing flexibility, control, and efficiency while addressing DeFi fragmentation issues.

The Mangrove DEX ecosystem consists of Makers (liquidity providers), who post and own custom smart-contract offers, also known as smart offers. Takers, who buy or sell assets with market or limit orders; and Keepers, responsible for detecting and managing failing offers. For more information, refer to the article: Building the Future of DeFi together and to the documentation: Makers, Takers, Keepers.

Some of the game-changing features Mangrove introduces include:

• Reactive liquidity: Offers are not locked in a pool and remain ready for use on Mangrove when needed. As long as an offer posted on Mangrove is not taken, it can generate yield elsewhere on the chain, with platforms like Aave, Beefy, or Tetu serving as great examples.

• Amplified liquidity: Liquidity can be leveraged across multiple pairs to optimize trading potential. For example, the same USDC liquidity can be used to create offers on WETH/USDC, WMATIC/USDC, and WBTC/USDC pairs.

• Persistence: On-chain offers automatically repost with zero latency and no gas costs for makers, enhancing trading efficiency. This is achieved through attaching code to on-chain offers so that the proceeds of executing an offer can be used to repost another offer, typically on the other side of the book, with zero-latency.

• Last look: Makers can implement defensive mechanisms in the smart offer code to cancel a promise if market conditions shift.

These features aim to minimize fragmentation, consolidate DeFi liquidity on Mangrove, and put it to work, providing users with enhanced control, flexibility, and efficiency in their trading experience.

One example that showcases Mangrove's capabilities is its DEX’s advanced limit order which is now available on the Mangrove dApp. These orders have unique characteristics that differentiate them from traditional DEX’s limit orders:

• Until a limit order is taken, funds remain in the maker’s wallet. This allows makers to change their minds and spend the funds elsewhere without having to cancel the offer and recover the locked funds.

• Limit orders can become reactive thanks to custom code embedded in them, giving in particular the ability on the Mangrove dApp to have access to advanced features normally only available on CEXes such as “Immediate or Cancel”, “Good ‘til time” or “Fill or kill” limit orders. More information about these 3 types of limit orders here.

Advanced limit orders can use more sophisticated custom comusde, using, for example, oracles to enhance the trading experience. To incorporate your own custom limit order code, you can refer to the limit-order SDK documentation.

How to use the Mangrove DEX

Initially, Mangrove is launching its Testnet with the following markets: WETH/DAI, WETH/USDC and DAI/USDC.

To start trading on the Mangrove DEX, head over to testnet.mangrove.exchange. Take advantage of market orders and advanced limit orders. Get started with ease, no matter your experience level.

Consult dApp documentation for a comprehensive step-by-step guide on placing market and limit orders, and tracking your open orders and fills. 

Early Mangrovians: Get rewarded with exclusive NFTs 

As a Mangrovian and early user of the Mangrove DEX testnet, you'll be eligible to redeem up to three special NFTs. The first two will be available to all who participate in the Mangrove questlines. In addition, a third, limited edition collectible will be exclusively available to the winners of special competitions on Mangrove Discord server.

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