Mango Token Auction v2

The sustainability of on-chain order books has been discussed frequently in the developer meetups. One proposed alternative is a frequent batch auction. Given how difficult it is to estimate the impact of such an idea before building it, a small group of contributors (Henry, Adrian and me with valuable input from many others) has started to work on a prototype for this concept based on a fork of the serum AOB code.

The basic primitive can be used to solve various needs of a DAO:

  • ICO, sell own governance token for USDC
  • token buy-back, buy own governance token with USDC
  • bond selling, sell bond token that is later redeemable for USDC + interest

The project is currently in a POC stage:

  • on-chain program is mostly complete and charges 60bps fees on every trade
  • client code is still undergoing testing for large order book sizes (10000s of users)
  • user interface can be used by developers

In order to finalize this first step of the development, we would like to focus on the concrete use-case for ICOs and finish all parts needed to make this a commercially viable project:

  • Finish all performance tests and client code changes needed to support 10000 participants
  • Create an easy to use user-interface that allows users to participate in sales through regular wallets as well as realms multi-sigs / DAOs
  • Decide on a catchy product name that ties into the Mango brand
  • Allow the sale of locked tokens (current version only settles regular SPL tokens)
  • Get an audit from Otter Security, they audited Serum’s AOB before
  • Release the source code and deploy the program to mainnet
  • Create a landing page, documentation and a media kit for marketing
  • Launch an actual sale of a redeemable token until breakpoint 22 for exclusive mango themed merchandise on mainnet

Given how difficult regulatory issues around ICOs are, the protocol has been designed so that the reference GUI doesn’t need to host all sales. Instead third party GUIs will be able to receive 50% of the fee revenue and it will be really easy for developers to build their own UI.

We are requesting 3 grants from the DAO:

  • donderper: 50k USDC + 1M MNGO vested over 5 years, development and continued support w/ security / serum upgrades
  • Otter Sec: 120k USDC, 3 week audit
  • aigor: 10k USDC, 3 week freelance design for UX, landing page and media kit