October Market Changes

Background

I think it’s time to add a bunch more markets to Mango. As you may know, we have a limit of 15 oracles per MangoGroup in the current design. This means we can have 15 unique spot markets and 15 perp markets that share the same oracle. We can also have perp markets that don’t have a corresponding spot market or SPL token, but it would take up an oracle slot.

We’re still working on tweaking the liquidity mining. I’ll probably propose more changes today and we’re vote on them. But I think we can continue to experiment while have more perp markets on Mango. But we will have to decide on what those markets should be and how much to allocate to each in liquidity mining (LM) if at all. We also can take this opportunity to reevaluate the leverage for tokens and perps.

We already have oracles for 8 oracles:
MNGO, BTC, ETH, SOL, SRM, USDT, RAY, COPE

New Markets & Changes

FTT SPOT

FTT already has an SPL token and I suspect a lot of people in the Solana ecosystem want to collateralize with and trade FTT.

5x leverage

MNGO-PERP

4x leverage - come on it’s Mango
Liquidity Mining: 250/h (6k/d)

BTC-PERP

20x leverage - I think we can experiment with 20x and might as well do it with BTC
LM: 1000/h (24k/d) - reducing this from 2000

ETH-PERP

10x leverage - the leverage can probably be higher, but I think it’s better to start low and increase later. Reducing leverage later is hard.
LM: 500/h (12k/d)

SOL-PERP

LM: 1000/h (24k/d) - reduce a bit to reduce inflation

SRM-PERP

10x leverage - leverage might be too high on this one. Open to other suggestions
LM: 250/h (6k/d)

RAY-PERP

8x leverage
LM: 250/h (6k/d)

DOT-PERP

10x leverage - This one doesn’t have a corresponding SPL token. So this is new for us. I say we try out one of these (could also be ADA, AVAX or BNB in this slot). You can’t do the basis trade so maybe we should start off with only 5x and increase it later. With this addition, we can gather some info on how much people want non-SPL tokens and the big high volume coins. If this one is popular, we can quickly add ADA, AVAX and BNB
LM: 500/h (12k/d)

FTT-PERP

10x leverage
LM: 250/h (6k/d)

Fee Changes

Since the LM is being tweaked constantly and we don’t really need the fees into the DAO, what if we change fees for all perp markets from maker/taker 0/5bps to -4/5? We could also keep the fees as they are and just make sure we move fast and make market maker incentives good.

Liquidity Mining

I’m in favor of keeping the liquidity mining rewards high even if they’re inflationary. But I don’t think we should reward a lot if it’s not serving the purpose we want. Any suggestions on this?

I think its fine to keep running but we just need to work out better ways to get more users involved. Via the funding of Trading Tools Via a Bounty Program That Targets Bot Devs or Something.

A fee model based on how many MNGO you hodl would be a good way to go about it. This will bring more value to MNGO while also promoting more trader’s & market maker’s to get involved.
Example: Offer -4/5 to traders that hodl 10,000 MNGO…

A Buy & Burn Model might also be a good system to put in-place for excess funds from fees. This will help offset the issues some users might have with the inflationary aspect of liquidity mining.

The focus of these changes is to make mango a great product not maximize the short term value of the governance token. Lots of people suggesting buy and burns, and gated fee tiers based on mango hodling without considering that funding growth of the mango platform is much more worthy short term goal.

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