Launched in 2020 by co-founders John Patrick Mullin, Will Corkin, and Rodrigo Quan, Mantra has quickly established itself as a prominent player in the DeFi space, offering user-friendly financial solutions.
Today, we will cover the following topics:
- About Mantra (OM)
- How does Mantra work?
- Key Features and Use Cases
- Technical Analysis
- Why is OM The Coin of the Week?
About Mantra (OM)
What is Mantra?
MANTRA has developed a unique ecosystem for tokenizing real world assets (RWAs), featuring both a dApp network and a modular execution layer.
At its core MANTRA Chain is a Layer 1 blockchain built specifically for RWAs.
It allows for permissioned applications on a permissionless blockchain, ensuring compliance with real-world regulations. Which makes it an ideal ecosystem for users, developers, and regulators to facilitate global RWA liquidity.
Mantra's mission is to create an inclusive financial ecosystem using blockchain technology, giving users control over their assets and the possibility to earn rewards through various DeFi functions.
Dig deeper into Mantra whitepaper.
OM Token
The total supply of OM tokens is capped at 888,888,888 OM, ensuring scarcity and helping to maintain the token's value over time.
The OM token is integrated within the Mantra ecosystem, serving various main functions:
Staking
Users can stake OM tokens to earn rewards. The staking process is straightforward providing an incentive to users for holding and participating in the ecosystem.
Lending and Borrowing
OM tokens can be used in lending and borrowing on Mantra’s platform. This feature allows users to lend their assets for interest or borrow against their assets, providing liquidity and additional earning opportunities while ensuring the security of their assets.
Governance
OM holders can participate in the governance of Mantra, influencing its future direction and development. Mantra operates through a community governance model, where OM token holders can propose and vote on different initiatives, ensuring that the platform evolves according to the community’s interests.
How does Mantra work?
Mantra's ecosystem, known as the OMniverse, is structured into four core components: MANTRA Nodes, MANTRA Chain, MANTRA Finance, and MANTRA DAO.
Each of these components plays a vital role in offering a wide array of DeFi services to both retail and institutional investors.
MANTRA Nodes
MANTRA Nodes play a critical role in revenue generation and in expanding the Sherpa community's holdings by providing yield-earning opportunities across multiple blockchains. Validator nodes help MANTRA establish a presence in new blockchain networks, facilitating the growth of its cross-chain DeFi ecosystem.
Additionally, MANTRA offers Infrastructure-as-a-Service (IaaS), enabling organizations and individuals to set up and manage validator node operations. This includes node management, retail staking, institutional nodes, and the development and deployment of cloud-based or white-label nodes.
MANTRA Chain
MANTRA Chain is a protocol within the Cosmos ecosystem, leveraging the Inter-Blockchain Communication (IBC) module for seamless interoperability with other blockchains.
This architecture provides a developer-friendly environment for building various applications, from games to decentralized exchanges (DEXs). The network's compatibility with the Ethereum Virtual Machine (EVM) combines the strengths of both the Cosmos and Ethereum ecosystems.
MANTRA Chain also includes a decentralized identity (DID) module to meet KYC and AML requirements, facilitating the development of secure and compliant applications.
MANTRA Finance
MANTRA Finance aims to bridge the gap between decentralized finance (DeFi) and traditional finance (TradFi).
The platform seeks to bring the speed, transparency, and accessibility of DeFi to the often opaque world of traditional finance.
Users can trade, issue, and earn from digital assets in a non-custodial and permissionless manner, enhancing financial inclusion and efficiency.
MANTRA DAO
MANTRA DAO ensures community involvement and transparent governance at every stage of the platform's development. It offers services that enhance the efficiency of other DAOs, including treasury management, governance solutions, and DeFi integration.
Notable DAO partnerships include HeliSwap, the first DEX and DAO on the Hedera network, and ZENSTAR, a substrate-based money market on the Astar network within the Polkadot ecosystem.
Key Features and Use Cases
On-chain Decentralized ID
Secure and Efficient Identity Verification
MANTRA's on-chain Decentralized ID (DID) system offers a secure, efficient, and reusable method for verifying an individual's identity to meet regulatory KYC/AML requirements.
Soulbound NFT / ID
Unique, non-fungible tokens (NFTs) linked to a specific user's ID serve as proof of identity. These NFTs can be used for KYC verification with third parties, ensuring the user's identity is securely stored just once.
Convenience and Efficiency
This eliminates the need for repeated KYC processes, making identity verification more convenient and efficient.
Tokenization of Real-world Assets (RWA)
Digital Representation of Assets
Tokenization involves converting ownership of real-world assets, such as art, commodities, and real estate, into digital tokens. This process makes these assets more easily tradable.
Automated Transfer of Ownership
Blockchain technology streamlines the bureaucracy and manual processes involved in asset transfers, ensuring transparent and immutable transaction records.
Security Token Offerings (STOs)
Tokens are issued through Security Token Offerings (STOs) and can be traded on MANTRA Chain’s decentralized exchange (DEX) with full KYC/AML compliance.
Identity System
Decentralized I.D. (DID)
MANTRA Chain utilizes a Decentralized Identity (DID) system for KYC/KYB onboarding. This allows users to join the ecosystem in a permissionless manner while utilizing its full capabilities.
Passportable User Experience
The platform offers a smooth onboarding experience similar to centralized systems, reducing fraud and malicious activities through comprehensive AML/CT screening.
IBC Compatibility
Integration with Cosmos Hub
MANTRA Chain’s protocol is compatible with the Cosmos Hub, enabling multi-asset transactions and the movement of tokens between zones using IBC (Inter-Blockchain Communication) coin packets.
IBC Coin Packet Transactions
These transactions require commitments from the sender, hub, and receiver blockchains, ensuring secure and reliable transfers.
On and Off-ramping
Regulatory Compliance
MANTRA Chain provides on-ramp and off-ramp services for fiat, equities, tokenized securities, and digital assets in a regulatorily compliant environment.
Access for Retail and Institutional Users
Both retail and institutional users can access these on-ramp and off-ramp services, making the platform versatile and inclusive.
Seamless Conversion
The platform facilitates seamless conversion between fiat and digital assets, enhancing user convenience and expanding overall usability.
Technical Analysis
As per our previous market outlook, OM has been trading within a big range between $0.55 support and $1.05 resistance levels.
Currently, it is hovering around the upper bound of the range.
For the bulls to maintain control, a break above the $1.05 resistance level is needed.
Meanwhile, as OM retests the lower bound of the channel, we will be looking for new short-term trend-following buy setups.
Why is OM The Coin of the Week?
This week, we've chosen OM for its innovative approach to delivering comprehensive DeFi services within a community-governed framework.
Mantra's platform meets the demand for accessible and inclusive financial solutions, allowing users to earn rewards, access liquidity, and participate in governance without relying on centralized intermediaries.
Additionally, from a technical standpoint, OM has shown resilience, maintaining strength even as most other altcoins have been melting.
Also read more Coin of the Week articles.
Thanks for tuning in to this week's coin of the week! We appreciate your readership and enthusiasm for exploring the crypto landscape with us.
See you next week for another coin of the week! 🚀
