Manta Network is making another big move!
Recently, Manta Network proposed a proposal to take out 1 million MANTA from the foundation and turn these MANTA into vMANTA through BiFrost's liquidity staking service. Then, they also plan to create a MANTA/vMANTA stable pool on Firefly DEX. If this move is realized, the price of MANTA will be stabilized, and the security and liquidity of Manta Network will be greatly improved!
These three companies are not pushovers. Manta Network has been working in the privacy field for many years and has excellent technology; BiFrost is a master at liquidity staking; and Firefly DEX's centralized liquidity is unique in the world. What kind of sparks will be created by joining forces this time? Just thinking about it makes people excited!
This drama is full of highlights. On the surface, 1 million MANTAs are transformed into vMANTAs, but in fact, it is to leverage a larger market. If the price of MANTA stabilizes, the Manta ecosystem will surely explode; if liquidity increases, DeFi gameplay will flourish. If vMANTA's stable hook is a beautiful demonstration, then in the privacy track, won't Manta Network be far ahead?
Therefore, Manta Network's big move this time is by no means just a trick, but a carefully planned liquidity reform! What kind of changes will the cross-border integration of millions of MANTAs bring to the Manta ecosystem? What exciting highlights will this "stable peg" drama have? Let's wait and see.
1. Proposal Overview: Stake 1 million MANTA to create a vMANTA stable peg
Although 1 million MANTA may seem like an astronomical figure, it is only a small part of the reserve fund for a high-quality public chain project. However, if these valuable funds can be used to leverage greater potential, then it is truly the best use of them. This is the essence of Manta Network’s latest proposal.
This proposal directly hits the pain points and difficulties of the Manta ecosystem development. As we all know, staking is crucial to the PoS public chain, but unfortunately most staking is in a locked-up mode, and the tokens cannot be moved, and can no longer participate in other gameplay such as liquidity mining, which undoubtedly weakens the enthusiasm of many people to participate. If the staked tokens can circulate freely like native tokens, wouldn’t it be the best of both worlds?
This is exactly what vMANTA will do. Through the BiFrost protocol, staked MANTA can be exchanged for vMANTA at a 1:1 ratio, and vMANTA can be freely traded on platforms such as Firefly DEX, just like MANTA.
Simply put, the proposal is to take out 1 million MANTA, and through deep mining and other methods, make the vMANTA/MANTA trading pair stable at around 1:1 for a long time. In this way, staking MANTA can gain two benefits: you can get staking rewards, you can use vMANTA to trade and make profits, and you can redeem it at any time. It can be said that it kills two birds with one stone.
2. Why is liquidity staking so important?
Speaking of liquidity staking, you may ask, how important is this thing? Although it is just a small function, it is of great significance to the Manta ecosystem!
Think about it, traditional PoS staking requires locking tokens for a period of time, doesn't this limit the freedom of funds? But with BiFrost's liquidity staking, the situation is different. Holding vMANTA, want to make some money on DEX liquidity? No problem! Want to use it for lending? That's OK too! It doesn't affect the liquidity of the token at all. This is much better than dead lock.
If this function is promoted, the Manta Network will benefit greatly. Think about it, if the staking threshold is low, more people will naturally participate, and the degree of decentralization will be higher. Will the security and anti-manipulation of the network also be improved? Moreover, once the participation threshold is low, it will be easier for ordinary users to participate in network construction and governance. It can be said that promoting liquidity staking is basically equivalent to opening a cheat for the ecological development of Manta Network!
So you can see that although liquidity staking may seem insignificant, its importance to the Manta ecosystem cannot be underestimated. With it, the enthusiasm of ordinary users to participate in staking will inevitably be ignited, and more and more talents will truly join Manta. This not only means that the decentralization, security, and stability of the network will be greatly improved, but also means that the Manta ecosystem will usher in a blowout.
3. How does centralized liquidity help vMANTA stabilize its peg?
So, in order for vMANTA to truly achieve a stable peg with MANTA, liquidity alone is not enough, and we must also find a way to control the stability of the price. This is where Firefly DEX, a DEX that supports "centralized liquidity" (CL), comes in!
Here, the so-called "centralized liquidity" allows liquidity providers to concentrate funds in a specific price range, rather than evenly distributing them like traditional AMMs. For example, if everyone thinks that the price of MANTA will fluctuate between 1U and 2U, then the liquidity can be concentrated in this range. In this way, the efficiency of fund utilization is improved, and more importantly, the price slippage can be greatly reduced.
Take Firefly, a DEX that supports CL, for example. Even with a large transaction of 1 million U, the price fluctuation of vMANTA may be controlled within 1%. In contrast, in traditional DEX, large slippage is likely to occur in this case, which can easily break the peg between vMANTA and MANTA. Therefore, centralized liquidity can be said to be a key factor in stable peg.
It is great news to be able to cooperate with Firefly for maintaining the stable peg of vMANTA! With CL as a powerful tool, the price stability of vMANTA will surely be taken to a higher level. In this way, the risk of staking MANTA will be greatly reduced, and I believe it will attract more users to participate. At the same time, the high stability of vMANTA will also provide strong support for the prosperity and development of the entire Manta ecosystem. It can be said that the addition of Firefly has brought vMANTA's goal of stable peg one step closer!
4. What benefits will the stable peg bring to the Manta ecosystem?
So, what benefits will the stable peg of vMANTA bring to the Manta ecosystem? First of all, the stable peg of vMANTA will definitely greatly increase the attractiveness of staking. Think about it, many people are reluctant to stake, isn't it because they are afraid that the price of the staked tokens will fluctuate too much, and it will be difficult to cash out at that time? But with vMANTA, a stable and easy-to-use option, are you still worried that no one will participate in the security construction of the Manta network? Everyone will definitely participate enthusiastically!
Secondly, the improvement of vMANTA liquidity will also greatly promote DeFi activities within the Manta ecosystem. Think about it, various DEXs, lending protocols and other DApps can use vMANTA as an important source of liquidity and collateral. In this way, will the entire DeFi ecosystem be more prosperous?
The last point is also the most critical one. Stable peg actually has a positive impact on the long-term value of the MANTA token itself. Do you think that with a reliable derivative like vMANTA, MANTA holders can hold it for a long time with more peace of mind? On the contrary, if the pledged token is always unstable, there will definitely be selling pressure on the price of the original token. So from this perspective, this proposal is really beneficial to the long-term healthy development of MANTA!
In conclusion:
In general, Manta Network’s introduction of this stable-pegged liquidity pledge in the ecosystem is really a brilliant move! This is not a simple brainstorm, but a clever combination of BiFrost’s liquidity solution and Firefly’s CL innovation, which can be said to kill multiple birds with one stone. In this way, whether it is the Manta network’s pledge security, the prosperity of DeFi, or the long-term value of MANTA tokens, they can all be comprehensively improved. This is the effect of 1+1>2!
Of course, the Manta team is able to come up with such a comprehensive plan, which is absolutely inseparable from their foresight in ecological construction. They know very well that if Manta wants to stand out in the competition of privacy Layer1, it is not enough to have strong technology, but also to spend more time and effort on ecological construction. This stable pegged liquidity pledge solution is their excellent attempt in this regard.
It is foreseeable that with the implementation of this innovative solution, the Manta network will surely gain more attention and recognition in the privacy Layer1 track. This is not only because of its technological advancement, but also because of its forward-looking nature in ecological construction. As more and more users and developers are attracted to the Manta ecosystem, this ecosystem will surely become more prosperous and more diverse.
Lao Mao (Twitter): https://x.com/readonlm
Bifrost related links:
Website：https://bifrost.finance
Twitter：https://twitter.com/Bifrost
Dapp：https://app.bifrost.io
