Mango Markets, a decentralized finance (DeFi) platform on the Solana blockchain, is shutting down permanently following a community vote approving its closure on Friday.
The decision marks the end of a platform that once played a prominent role in DeFi lending and trading. The shutdown process begins immediately, with users advised to close their positions as operations wind down.
Mango Markets 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 struggled to recover since.
Sponsored
According to a post by the platform on its X account, users are advised to close their positions as the shutdown process begins on January 13 at 8 PM UTC.
Most borrowing on Mango Markets will become economically unviable moving forward. Ahead of its closure, the platform implemented strict new measures to tighten lending and risk management .
Slashes Borrowing Limits and Increases Costs
According to Mango Markets, the fourth version of the platform (Mango V4) significantly reduces how much users can borrow. The lending ratio has been slashed from 50% to just 0.1% of total deposits.
Borrowing tokens like SOL, USDC, USDT, and ETH will now be much more expensive due to increased interest rates. Additionally, users will need 10 times more collateral to open new positions.
Mango Markets Exploit
The decision follows the October 2022 exploit, when the Solana-based DeFi platform suffered over $117.8 million exploit in 14 different cryptos.
Cryptocurrencies stolen in Mango Markets exploit. Source: Elliptic The 28-year-old US trader Avraham Eisenberg manipulated the Mango Market’s price oracle and used the inflated collateral to borrow funds, draining 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 US Department of Justice charged Eisenberg with orchestrating a scheme to fraudulently acquire approximately $110 million in crypto from Mango Markets and its users by manipulating the price of certain perpetual futures contracts.
While Mango Markets implemented tighter security measures following the hack, the incident exposed critical vulnerabilities in the platform’s governance and risk management systems, undermining user confidence and leading to its eventual collapse.
In 2022, Mango Markets was considered one of the more prominent decentralized finance (DeFi) platforms on the Solana blockchain, especially known for offering lending, borrowing, and margin trading.
Why This Matters
Mango Markets’ shutdown signals a major loss for Solana’s DeFi ecosystem, reflecting the challenges of inadequate security and governance. Its 2022 exploit and resulting collapse highlight risks for DeFi projects lacking proper oversight.
Check out DailyCoin’s trending crypto news:
Cardano’s Price Plunge Raises Alarm, Triggering Investor Sell-Offs
Dogecoin Declines 19% From YTD Peak as Market Sentiment Turns Sour
