Manafortune is a decentralised non-custodial liquidity protocol where users can participate as suppliers or borrowers. Manafortune protocol has a higher Loan-To-Value(LTV), Liquidation Threshold, and lower Liquidation Bonus and Reserve Factor than other lending protocols. Please visit https://manafortune.com to use MAN.
MANA token
The MANA token is the native governance token of the Mana Protocol. It empowers holders to participate in decision-making through protocol governance. MANA is a BEP-20 token deployed on the BSC(Binance Smart Chain) and is accessible across various decentralised exchanges.
The token holders have the ability to influence the future of the Mana Protocol through governance. MANA holders can vote on proposals or delegate their voting power to others. By participating in governance votes, holders contribute to decisions on protocol deployments, parameter adjustments, features, and more.
Liquidity Pool
A liquidity pool is a Mana market instance that enables users to participate as suppliers or borrowers. Governance-approved parameters, such as reserve configurations and collateralization thresholds, define each pool. Suppliers provide liquidity into the pool that borrowers can access through overcollateralised positions. In return, suppliers earn interest, while borrowers can obtain liquidity against their collateral, all facilitated through decentralised smart contracts.
Mana liquidity pools operate on a blockchain network governed by decisions that define the chain and reserve parameters. Parameter decisions must balance liquidity demands for various actions with risk management. The use of smart contracts validates parameters, executing the actions of borrowing, repaying, and liquidation processes seamlessly without intermediaries. This decentralised approach enhances the transparency, efficiency, and security of financial interactions within the pool.
Supply
Supplying tokens to the Mana Protocol allows users to earn interest on their digital assets and utilise supplied tokens as collateral. When tokens are supplied, they are transferred to the Mana liquidity pool, a system of smart contracts that facilitates overcollateralised borrowing of tokens. In Mana, supplied tokens automatically accrue interest based on the current market supply rate. As the balance of supplied tokens increases, interest is accrued dynamically, reflecting the current rate allocated to suppliers.
Interest rates for supplied tokens are determined by the borrow utilisation rate, which measures the proportion of assets currently borrowed against the total supplied in the pool, and by governance parameters that can be adjusted through community decisions. These parameters, including collateralisation requirements and interest rates for suppliers and borrowers, are influenced by onchain inputs such as token balances, oracle prices, and the borrow utilisation ratio. As liquidity is supplied, borrowed, repaid, or withdrawn from the pool, the interest rates are updated accordingly.
Withdraw
Mana Protocol allows suppliers to withdraw their supplied tokens, including accrued interest, as long as there is sufficient unborrowed liquidity in the reserve. The withdrawal amount is limited by the available underlying assets and the user’s ability to maintain a sufficient collateral ratio for their borrow position.
Borrow
Borrowing tokens from the Mana Protocol allows users to access liquidity by using their supplied tokens as collateral, unlocking capital without selling their assets. However, borrowers face liquidation risk if the value of their collateral falls below the required threshold. Interest rates are determined dynamically, influenced by protocol factors and governance decisions, and can change over time based on community input. Interest accrues based on the utilisation rate, which reflects the percentage of supplied liquidity that is borrowed. Higher utilisation rates lead to higher interest rates, adjusting with demand. Each reserve has specific parameters designed to incentivize both borrowers and suppliers.
Repay
Repaying borrowed tokens in the Mana Protocol is an important step for managing borrow positions. Borrowers can repay using the same tokens they borrowed, or repay with mTokens (collateral tokens) of the same underlying token.
Governance
The Mana DAO is a decentralised collective of MANA token holders and contributors who work together to shape the future of the protocol through a structured governance process. This community-driven model enables participants to propose, discuss, and vote on critical changes, guiding the evolution of the protocol and aligning with the collective goals of its members.
The Mana Protocol is governed by the MANA token holder community (MANA and stkMANA on Binance Smart Chain) through procedures, voting, and smart contract execution, collectively known as Mana Governance.
Safety Module
The Mana Safety Module (SM) is a core protocol insurance layer designed to protect against deficits (“shortfall events”) in Mana’s lending markets. Users stake MANA, receiving stkMANA in return. In the event of a shortfall, up to 30% of the module’s assets can be auctioned off to cover the deficit.
Staking Module: Users lock MANA tokens and earn a reward (Safety Incentive).
Auction & Backstop Modules: On a shortfall, an auction mechanism sells off staked tokens, with a backstop pool providing a price floor to protect MANA’s value. Cooldown Mechanism: Withdrawals after unstaking are subject to a 20-day cooldown.
