• Mangrove, a decentralized exchange (DEX) has gone live on Polygon’s testnet.
• The programmable order book technology can take the form of a piece of code and function like an IOU.
• Traders can use their assets elsewhere without canceling the offer and recovering funds.
Mangrove Launches on Polygon Testnet
Mangrove, a decentralized exchange (DEX), went live on Polygon’s testnet with a programmable order book, the firm said on Monday. Paris-based Mangrove has raised about $10 million so far, and is backed by trading and market making powerhouses like Wintermute and Cumberland. A mainnet launch will follow around the start of next month, the company said.
Summer Of DeFi
2020’s so-called “summer of DeFi” delivered the realization that anyone could be included in providing liquidity to financial markets, not just big named firms and institutions. However, these original DeFi tools were rather blunt and developers have since been sharpening the infrastructure needed to evolve the space.
Programmable Order Book Technology
Mangrove’s “advanced limit order” innovation means an intention to trade can take the form of a piece of code and function like an IOU, so an offer to sell some ETH at a certain price, for example, can exist on-chain without the need to lock up funds. That allows traders to use those assets elsewhere without canceling the offer and recovering the funds.
“Savings Account” Feature
This more flexible version of a limit order allows traders on Mangrove to propose selling some digital assets at a given price while also depositing those assets as collateral on a lending platform and generating passive yield, for example. “So at the same time, you have a savings account,” according to Vincent Danos co-founder of Mangrove,. “and can sell at a certain exit price.”
The mainnet launch is planned for early June 2021. Investors are looking forward to this new development as it will give them more flexibility in their trading strategies while still allowing them access to potential profits from their digital asset investments through features such as “savings accounts”.