Mango Markets, the decentralized finance (DeFi) platform on the Solana blockchain, is permanently shutting down following a community vote that approved the closure last Friday.
The decision marks the end of a platform that once played a major role in DeFi lending and trading. The closing process begins immediately and once the operation is over, users are advised to close their positions.
Mango market closes
The Mango Markets community cast 23,347,212 governance votes to shut down the Solana-based DeFi platform, which suffered a $117 million exploit in 2022 and has since struggled to recover.
According to a post by the platform on the
Most borrowings in Mango Markets will become economically unfeasible in the future. Ahead of the closure, the platform implemented stringent new measures to strengthen lending and risk management.
Reduces loan limits and increases costs.
According to Mango Markets, the fourth version of the platform (Mango V4) significantly reduces the amount users can borrow. The loan ratio also dropped significantly from 50% of total deposits to 0.1%.
Borrowing tokens like SOL, USDC, USDT, ETH is now much more expensive due to rising interest rates. Users also need 10 times more collateral to open new positions.
Mango Market Exploitation
This decision follows an October 2022 exploit in which the Solana-based DeFi platform suffered over $117.8 million in exploits across 14 cryptocurrencies.
Avraham Eisenberg, a 28-year-old American trader, manipulated Mango Market’s price oracle and borrowed funds using inflated collateral, depleting the platform’s reserves.
Despite the platform’s efforts to negotiate with Avraham Eisenberg, including offering a bug bounty, the stolen funds were never fully recovered.
In April 2024, the U.S. Department of Justice charged Eisenberg with orchestrating a scheme to fraudulently obtain approximately $110 million in cryptocurrency from Mango Markets and its users by manipulating the prices of certain perpetual futures contracts.
Although Mango Markets implemented more stringent security measures following the hack, the incident exposed serious vulnerabilities in the platform’s governance and risk management systems, eroding user trust and ultimately leading to its collapse.
In 2022, Mango Markets was considered one of the most prominent decentralized finance (DeFi) platforms on the Solana blockchain, particularly known for offering lending, borrowing, and margin trading.
Why This Matters
The closure of Mango Markets represents a major loss to Solana’s DeFi ecosystem, reflecting inadequate security and governance issues. The 2022 exploit and subsequent collapse highlight the risks of DeFi projects lacking proper oversight.
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