What is MANTRA DAO? The MANTRA DAO is a decentralized application being built on the Rio Chain. The Rio Chain is a Substrate-based blockchain infrastructure that is interoperable with the Polkadot network. The MANTRA Dao hopes to address key issues facing traditional blockchains while hoping to bring mass adoption to the DeFi ecosystem. This application is a project that is initiated by the MANTRA DAO foundation. The MANTRA DAO foundation was created in order to maintain their platform and also assist OM token holders. OM token holders are beneficiaries of the foundation and also have governing rights on the platform.

The platform is a fully integrated ecosystem of decentralized financial services that is built on interoperable technologies and controlled by the public. The overall governance mechanism of the platform is decided upon by the platform’s digital token, OM. The OM token allows holders to participate in making decisions that will affect the parameters of the system. Users who contribute to the system will also receive rewards via OM token and provided access to various economic incentives. This platform also supports the Karma Protocol. The Karma Protocol is a reputation mechanism that helps assess the participants’ behavior within the ecosystem and also keeps track of the OM holders’ performance.

What is DAO?

Before we dive deeper into what MANTRA DAO is, let’s first talk about what DAO is. DAO stands for decentralized autonomous organizations. DAO is decentralized because it is not controlled by a single location. Instead, it requires smart contracts to help govern its operations and determine the functions of the organization. With DAO, it allows communities to leverage the strength of everyone and turns everyone into an active participant in the growing network. In combination with the amazing potential in the DeFi system, DAO will help definitely bring better user experience, simpler governance, and more positive action in the crypto community.

Features of MANTRA DAO:

So what are some of the features of this platform?

  1. Saving and lending platform allowing depositors to earn interest on their pooled digital assets
  2. Governance token, OM, granting holders’ voting ability over economic incentives such as: interest rate, inflation and deflation levels
  3. Reputation protocol, KARMA, that helps A) weigh the voting power of OM token holders in proportion to certain measurable metrics, B) helps increase chances of OM token benefiting from financial incentive schemes. 

Services on the MANTRA DAO network:

The MANTRA DAO ecosystem provides a wide range of services that include staking, lending, stablecoins, derivatives, governance, grants, and custody.

Staking

The MANTRA DAO platform supports non-custodial staking services with Polkadot Ecosystem assets. These assets include DOT, KSM, and OM. As they add more Polkadot Ecosystems assets, the assets will also be available for staking on the platform. Moreover, DPoS assets such as XTZ, TRX, ADA, EOS, ELA, etc will also be available for staking. As of right now, the focus will be mainly on non-custodial staking, however, in the future custodial staking-as-a-service for other PoS assets, such as DASH and ETH 2.0 may be included. 

The rules of staking may vary from chain and asset. In the beginning, there will not be a charge for staking-as-a-service fees for Polkadot assets. However, there will be a fee for DPoS assets. All of these fees may depend on the staked asset and can be voted upon by the OM governance token. 

Lending

MANTRA DAO is currently developing multiple lending products. They are split into three phases: 

Phase 1 (Open Source Lending Protocol)

-Cross-chain bridges to existing open-source DeFi lending protocols, offers access to lending interest for Ethereum-based assets

Phase 2 (Third Party Lending Service Providers)

-Access to high-interest savings options and stablecoin loans, will allow cooperation with industry leaders across multiple blockchains and protocols

-Full suite access to services within a single, easy-to-use interface

Phase 3 (Own Proprietary Lending Algorithm)

-Will allow users to generate staking rewards while taking out stablecoin loans

-Users can utilize the system to leverage underlying assets

USDOM Stablecoin

USDOM is the native stablecoin on the MANTRA DAO platform. This stablecoin will be launching during Phase 3 of the lending platform. USDOM will be similar to MakerDAO’s DAI stablecoin.  The coin will be multi-collateral and generated through Collateralized Debt Positions in an overcollateralized manner. Unlike the DAI stablecoin that is only ERC-20 assets, the USDOM can have the backing by any cryptocurrency that the Polkadot network supports. 

Derivative Tokens

Derivative tokens will help provide liquidity for NPoS, DPoS, and other staking cryptocurrencies that would be locked as part of the staking process. The derivative tokens will also be able to provide users with the ability to take part in on-chain governance by voting their proposals on the MANTRA DAO platform. 

MANTRA Pool

The MANTRA Pool is a crypto savings game that will allow users to participate in a chance to win a percentage of the MANTRA Dao Foundation’s staking rewards. Each week, the protocol will select randomly generated winners and winners will be able to enter the MANTRA Pool by burning OM to gain entry.

Governance

Another key function of the MANTRA DAO ecosystem is the governance. Members who hold and stake OM are able to participate in submitting a proposal and vote on the system. Each staked OM represents 1 vote in the ecosystem. To propose a topic for voting, users will need to deposit $100 USD worth of OM as a collateral. If the proposal fails, then the users will lose the OM. However, if the proposal passes the evaluation, then the vote will proceed. If the proposal receives a simple majority (51%) of votes from valid voters, then the depositor will receive their OM back as well as additional KARMA for assisting the ecosystem. 

The Process of Voting

  • Proposals (1 week)
  • Evaluation of proposals (1 week)
  • Voting of proposals (1 week)
  • Implementation of proposals (1 week)

OM holders who stake OM can also propose changes to the MANTRA DAO ecosystem. These changes include:

  • Interest rates
  • OM inflation level
  • Ecosystem grants
  • Additional staking assets
  • Additional lending products

As of right now, the MANTRA DAO consists of 5 council members. The council members will serve 2-year terms and will help out with the proposals, evaluation, voting, and implementation process for MANTRA DAO. Every two years, there will be a voting for the next MANTRA DAO council members, with a maximum number of council members set at 9. Council members will always be at an odd number to ensure ties do not occur. Lastly, the maximum number of consecutive council terms for any council member is set at 5.  

*Note: It is possible within the governance model that sub-councils can be created to focus on specific topics. However overall power still remains with the MANTRA DAO council. 

Grants

The MANTRA DAO Foundation’s Member Grant program is a program with a design to directly support the growth and continual development of the MANTRA ecosystem. The program will provide grant allocations between 5k – 100k USD equivalent in OM tokens or USDOM stablecoin. Most of these allocations will go out to projects that increase OM’s adoption and usage. Projects that embrace the Mantra DAO Foundation’s guiding principles and vision will also be more likely to receive these grants. They give all grants out on a milestone basis, and allocation range can be subject to change via voting.

Custody

Security is a crucial element in the crypto industry. MANTRA DAO will leverage Rio Chain’s enterprise-grade security solution to ensure the safety and security of the network. MANTRA will also work with cryptocurrencies that are DPoS to reduce security risks. Hence, all of the digital asset’s custody will remain with the members. Moreover, if they create additional tokens in the future, Mantra DAO will utilize industry-leading security solutions to ensure the safety of the platform.

Competitive Analysis of the MANTRA DAO’s Rio Chain:

MANTRA DAO’s Partners:

MANTRA DAO Roadmap:

Conclusion

In conclusion, MANTRA DAO proves to be a platform that once again shows the potentials in the DeFi ecosystem. With MANTRA DAO’s many features and mechanisms, it will be interesting to see how the DeFi community will utilize their service.

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