Mangrove, supported by Wintermute and Cumberland, plans to launch its programmable order book DEX on the mainnet in early June.
Mangrove, a decentralized exchange (DEX), recently started operating on Polygon’s testnet. They introduced a programmable order book, as stated by the company on Monday.
Mangrove, based in Paris, has secured approximately $10 million in funding. The company is supported by industry leaders in trading and market making such as Wintermute and Cumberland. They plan to launch their mainnet around the beginning of next month.
In 2020, the “summer of DeFi” showed that anyone could participate in providing liquidity to financial markets, not just big companies and institutions. However, the initial DeFi tools were basic, and developers have been working on improving the necessary infrastructure to advance the industry.
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Mangrove’s “advanced limit order” innovation allows trading intentions to be expressed through a code, acting like an IOU. For instance, someone can put an offer to sell a specific amount of ETH at a certain price on the blockchain without needing to lock up the funds. This enables traders to utilize those assets elsewhere without canceling the offer and retrieving the funds, as explained by Mangrove co-founder Vincent Danos in an interview with CoinDesk.
Vincent Danos from Mangrove explained that if you state your trading plan on their platform, a market engine will execute that code and check if the promised liquidity is actually available and deliver it. However, if it’s not available, you will need to pay a small compensation or penalty based on the gas fees incurred by the person initiating the trade that you are unable to fulfill.
Mangrove’s flexible version of a limit order enables traders to offer to sell their digital assets at a specific price. Simultaneously, they can deposit those assets as collateral on a lending platform and earn passive yield. In simpler terms, it’s like having a savings account while also being able to sell at a predetermined price.
Important: This article is intended solely for informational purposes. It should not be considered or relied upon as legal, tax, investment, financial, or any other form of advice.