Mango Markets Liquidity Drain
News has been circulating continuously about the exploiter who managed to drain over $100 million from the Mango Markets ecosystem, leaving the platform effectively dry.
The exploit involved taking advantage of the low liquidity of the token using $10 million in capital.
Using two accounts, the first account was funded with $5 million, offering a short position of 483 million MNGO tokens. The other account was also funded with $5 million, which bought that position as a long. Additional capital was then used to pump the price of the token with such low liquidity order books up to as high as $0.91 from around $0.03. This resulted in several hundred million dollars of profit, which was then extracted from the liquidity on the platform. An intense debate has arisen as to if this was market manipulation and, therefore, illegal. Currently, the ‘short position,’ which was never closed, is in a profit of over $6 million. However, after the liquidity has already been drained, there is no way to take this profit out.
On Twitter, trader and developer Avraham Eisenberg has come forward as the exploiter of the platform and agreed to pay $67 million back to the Mango DAO team. It is yet to be seen how this will be redistributed to investors.
Uniglo.io
Many users will have lost significant amounts of money by staking their assets into the Mango Markets contracts.
Uniglo is a perfect way to gain exposure to appreciating assets without risking your capital in staking contracts. GLO is a token backed by a vault that invests in tokenized assets such as watches, real estate, classic cars, and gold. This vault will be under a multisig that will involve multiple people needing to approve transactions to ensure treasury safety. At the same time as these assets appreciate, the Uniglo team’s Ultra Burn Mechanism will be removing tokens from circulation, reducing supply which is likely to generate a ‘supply shock’ effect in liquidity. This burning will start the moment the project launches in November, as the last stage of presale is currently underway.
Disclosure: This is a sponsored press release. Please do your research before buying any cryptocurrency or investing in any projects. Read the full disclosure here.
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