Mangata thesis: gasless, MEV-minimized settlement for intent-based trading
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Argues intent-based spot protocols will route solver execution to Mangata, where gasless swaps (commission plus locking against spam) and the Themis MEV-minimizing consensus cut costs. Arbitrage must beat only the AMM fee.
Key claims
On Mangata arbitrage must beat only the AMM fee, versus fee plus MEV plus gas on Curve
Themis consensus extension removes MEV-causing powers
Spam control uses commission and locking instead of gas
I spent 100s of hours researching the @eigencloud ecosystem.
I looked into dozens of protocols building on restaking infra.
Based on this analysis I'm making a few heavy bets.
One of the main ones is a gasless and MEV-optimized, @eigencloud-based cross-chain AMM.
Alpha-🧵
1/ @eigencloud season will bring in billions of capital seeking exposure to the narrative.
This will be a major catalyst for ecosystem projects that build on @eigencloud's restaking technology.
Today I give you a thesis on one of my main bets (which I have covered in the past).
2/ As you might have guessed already, I'm talking about @MangataFinance.
Mangata is a cross-chain AMM implemented as an omni-chain "master-rollup" that leverages an @eigencloud-based fast finality layer for ZK proof verification.
x.com/zerokn0wledge_/status/1737443087339675978
3/ Last week, I covered @MangataFinance's security-first architecture, which thanks to escape hatch mechanisms is fully trustless.
Users are always in control of their assets.
x.com/zerokn0wledge_/status/1752693426527916364
4/ My thesis I want to share evolves around @MangataFinance's role as a core infra layer in an intent-powered trading stack and why it will capture trillions of volume.
We're entering a bull market. This means trillions in trading volumes and billions in fees.
Where will it go?
5/ If you have been following me for a while already, you know that I'm quite bullish on intent-based trading protocols.
Instead of directly calling a smart contract to trade, users just define an end goal they want to achieve. For example “swap 1 ETH for 2500 USDC”.
6/ The resulting transaction is executed by “solvers” who are incentivized with a fee to provide the user with an efficient path to the desired end state.
Solvers can be bots, professional market makers or protocol run servers.
7/ This design has some distinct advantages including gasless transaction execution.
Traders simply sign a message and the trade is performed. There is no network fee in ETH, just a % on the tokens charged by the solver.
8/ Moreover, intent-based exchanges can give CEX-grade speeds to users since the orderbook is off-chain.
Paired with account abstraction (ERC 4337), intents can provide a CEX-grade UX with social login functionality, removing the need of managing keys.
9/ I hence believe that intent-based trading protocols are in a great position to capture a lot of the bull market volume.
Are you following me anon?
10/ In the spot trading market, the leading protocols are UniswapX, @CoWSwap & @1inch Fusion.
They are RFQ systems that maintain an off-chain, centralized orderbook akin to Ethereum’s mempool where orders are queued for execution.
11/ Traders submit orders, which are then executed by solvers if they find it profitable.
Where the solvers execute the trade doesn't matter to the end user. By design, the solvers are incentivized to provide users the most efficient path.
12/ They want to provide a cheaper quote than their competitors, while still being profitable.
That's why on the backend, solvers are competing to find the cheapest execution.
13/ That's where @MangataFinance's cross-chain AMM based on @eigencloud comes in!
Mangata offers a gasless and MEV-optimized trading environment that can enable solvers to achieve best-in-class execution.
14/ How does Gasless Trading on @MangataFinance work?
While it sounds great in theory, it is complex to implement.
Gas solves a critical function on blockchains: it prevents spam attacks on the network.
15/ So how can a chain offer gasless swaps without giving up on spam protection?
@MangataFinance found a solution to this.
16/ Unlike traditional chains that rely on gas fees, Mangata utilizes an exchange commission and a locking mechanism as an alternative solution.
This not only improves the overall user experience but also provides a more sophisticated and efficient approach to controlling spam.
17/ How does @MangataFinance minimize MEV?
Mangata pioneers a novel consensus extension called "Themis", a solution for MEV on application-specific blockchains.
18/ It's fully implemented by MangataX (Kusama parachain) and will be used among @MangataFinance's decentralized sequencer set.
The current iteration of the protocol is focusing on the removal of powers causing MEV from any network participant, making them more equal.
19/ As a result, entire classes of value extraction activities are not possible on @MangataFinance, resulting in fair execution and guaranteeing a better price for users compared to similar platforms where value extraction is possible.
x.com/MangataFinance/status/1755194735981895893
20/ Are you still with me anon?
So we have intent-based trading platforms emerging that will likely capture trillions in bull market volume thanks to improved UX and speed.
This will lead to a competitive solver industry seeking scalable execution.
21/ Execution that @MangataFinance's can provide.
More efficiently than any other venue where solvers incur network fees and might suffer negative MEV externalities.
22/ This will turn @MangataFinance into a major settlement layer for intent-based spot trading protocols like UniswapX or @1inch Fusion.
The volumes that this will drive to @MangataFinance are enormous anon.
23/ But that's not all anon.
@MangataFinance will be a true blackhole for trading volume.
Thanks to the hyper-efficient trading environment, Mangata will attract billions in arbitrage volume too.
24/ On Curve for example, the profitable arbitrage has to beat: AMM fee + MEV + gas.
On Mangata there is only the AMM fee. This means there will be much more arbitrage volume driven by arbitrageurs looking to profit from smaller price differences.
25/ So in the end, @MangataFinance will serve:
✦ End-users looking for best-in-class cross-chain execution
✦ Solvers of intent-based trading protocols
✦ Arbitrageurs looking for profitable opportunities
26/ Trillions in dollars of trading volume, ready to be captured, all generating fees for @MangataFinance.
This is not your average AMM.
It's app-specific blockchain infrastructure built on @eigencloud that will play a key role in a modular multi-chain future.
Don't fade anon.
That's a wrap! I hope you've found this thread helpful! 🫡
Make sure to follow me @zerokn0wledge_ and @MangataFinance to stay up to date! 👀
Like/Repost of the below post is also highly appreciated! 🙏👇
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