Despite major financial institutions posting positive earnings during Q1 of 2021, trust in the legacy financial system is at an all-time low. Driving this trust gap is a lack of transparency and the inaccessibility of many products and services. In recent weeks, big banks have started to offer Bitcoin services to high-value accounts, which has been interpreted as a sign of the market’s maturity.
While the big banks’ incorporation of Bitcoin into their product offerings may show market maturity, the vast majority of users are better off buying Bitcoin themselves. The adage ‘not your keys, not your coins’ applies here– If JP Morgan has your private keys, it’s their crypto, not yours.
Despite the record earnings of financial institutions, many developing countries battled high inflation rates during the first quarter of the year, prompting citizens to seek out alternative financial products. The advent of DeFi brought a range of new trustless platforms into the blockchain ecosystem. DeFi offers a more inclusive, trustless, and transparent alternative to traditional financial products.
Though still a nascent industry, DeFi has grown tremendously over the past year and has locked in more than $73 Billion in value, according to DeFi Pulse. Though the industry is growing, DeFi faces the same problems that have plagued other blockchain platforms, with a difficult to understand user interface and lack of interoperability.
Mantra DAO presents a paradigm shift to the current economic zeitgeist by introducing an entirely community-led platform controlled by token holders. It’s a fully integrated ecosystem of DeFi services that runs on an interoperable tech stack and offers users complete autonomy, independent of externalities. The ecosystem runs on an underlying blockchain called Rio Chain, built on a substrate of the Polkadot ecosystem. This setup allows for high scalability, increased security, and facilitates easy access to the whole Polkadot ecosystem. Rio Chain has been audited Certik and allows different organizations with users across multiple blockchains to access the Mantra Dao system.
Mantra DAO’s partnerships include Kenetic, Plutus VC, Genesis Block, and Moonrock Capital, and the platform’s network is constantly expanding to extend services to a wider user base.
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 ERC-20-based coins. Mantra DAO expands access to a wider range of digital assets. Here are a few features users can expect from 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.
DeFi is still dominated by protocols running on Ethereum, but the Polkadot ecosystem giving users a wider range of options, interoperability and high fees have prompted many to look for alternatives. 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, Mantra DAO is expected to benefit from integrating further assets to stake and the ensuing network effects.
Mantra DAO’s OM token is now trading against BTC on Bitcoin.com Exchange.