Dual Finance is ready to launch an open discussion with the Mango community to align our interests around the following areas 1. Token Buyback 2. OpenBook Liquidity 3. MNGO Dual Investment Pools 4. Dual Partner Program.
Dual Finance has integrated onto OpenBook with its Risk Manager to provide liquidity directly for MNGO and currently is showing the tightest spread, but on limited size. The liquidity provided by Dual Finance is from options positions created via Staking Options(SO) and/or Dual Investment Pools(DIP). Staking Options allow projects the ability to incentivize their community in options, rather than tokens. Dual Investment Pools (DIPs) offer streaming, executable structured products for users to earn yield on their existing crypto.
The Mango DAO is considering conducting a buyback of MNGO. Rather than resting limit bids in OpenBook, the same end result can be achieved by issuing put options with a strike price equal to the desired bid price.
Dual Finance proposes minting & granting Downside Staking Options (Puts) to achieve its desired buyback, instead of resting a bid for MNGO. This proposed buyback via options serves MNGO holders & prospective investors by providing natural volume and liquidity to the OpenBook CLOB, rather than just directing volume motivated by liquidity mining rewards. We feel there is alignment already to support OpenBook liquidity in this sustainable manner and that it is key to the survival of this critical Solana DeFi primitive.
The Risk Manager is integrated now on OpenBook and will execute its hedging and provide liquidity to any listed asset on Dual Finance. SOL, ETH & BTC (pending wBTC-SPL) are supported today, but as part of this proposal, development work to support DIPs on MNGO will be completed. This means in effect, a streaming option market for MNGO. Any MNGO DIP volume executed through Dual Finance will directly improve liquidity on MNGO via OpenBook.
The proposed MNGO Downside Staking Option would be granted to Dual Finance for continued development of the Risk Manager on OpenBook MNGO order books and the ongoing servicing of this component. Additionally, this incentive will support the MNGO DIP offering and the required streaming liquidity. Further by providing this MNGO incentive using Staking Options, Dual Finance will be able to provide MNGO token liquidity & reciprocate a partnership grant of DUAL options to the Mango DAO treasury.
- Buyback program to purchase 250,000 USDC total of MNGO with prices of $0.016 & $0.019 for 125,000 USDC each. If all exercised, 14,391,447 MNGO payment, if none exercised, 250,000 USDC collateral returned.
- Improved MNGO liquidity on OpenBook as a function of position gamma from DIP & SO
- Listing MNGO on Dual Finance DIPs
- Streaming MNGO options liquidity to offer sustainable customized yields to MNGO holders
- Potential to issue future grants & community incentives via Staking Options
- Partnership Grant: 10M DUAL 6 months from TGE $0.05 Calls (Upside SO). Eligibility to apply and receive additional Partner Program grant: https://forms.gle/jCbd87xZ5oQo27Zw5
- Downside Staking Options: 7,812,500 MNGO 30 day $0.016 Put & 6,578,947 MNGO 30 day $0.019 Puts
- First partner project
Note: If there is no exercise and buyback is still desirable, we can propose a renewal of the Staking Options to be issued with new expiration & strikes.
The intention is that on the back of the success of this option based grant that future Mango proposals may choose to utilize Staking Options. We feel it’s important that the Mango DAO has more tools at its disposal to align community & grantee incentives than pure token vesting.
We consider this just the start of many ways in which we can collaborate and further the MNGO token’s value proposition. In the future, Dual Finance plans to integrate on Mango V4 and offer some interesting ways to incentivize the community to achieve its goals & higher prices.
With the help of the Mango team, we have most of the implementation work completed, to be ready if approved, but appreciate that there is a lot to unpack here so please comment with any questions, concerns or support. We look forward to addressing any feedback and hope this is the beginning of a long and fruitful partnership to further Mango DAO & Dual DAO’s collective interests.
Dual Finance is building Sustainable Incentive Liquidity Infrastructure for Web3 Communities. The key innovation, Staking Options, aligns incentives of participants by granting those who provide services or value to projects the right, but not the obligation to purchase tokens for a future price. No more token rewards, instead token option rewards.
The Risk Manager component first composed on Mango V3 perps & was the subject of the winning submission to the Solana Summer Camp Hackathon DeFi Track. To learn more about the Risk Manager, check out the demo (Risk Manager: Solana Summer Camp Hackathon Demo - YouTube), medium post and repository (GitHub - Dual-Finance/risk-manager: Risk management for Dual Finance protocol DIP positions).
To learn more about Dual Finance’s mission to align crypto incentives and bootstrap spot & options markets, follow us on Twitter (https://twitter.com/DualFinance), join the Discord (discord.gg/P3uH9AvEp5), and review our medium articles (Dual Finance – Medium). Dual Investment Pools to earn sustainable, customized yield and fuel natural liquidity on OpenBook are live again on mainnet at https://beta.dual.finance/.