Users of Mango Markets must exit by January 13, 2025, as the Solana-based DeFi platform winds down operations.
Mango Markets to Close Operations
Mango Markets, a Solana-based DeFi platform, is shutting down following a $117 million exploit in 2022. Users have until January 13, 2025, at 8 PM UTC to close their positions.
Governance Approves Closure
The shutdown was unanimously approved via governance, with over 23 million votes in favor. Preparations include adjusting Mango V4 lending parameters, drastically lowering the lending ratio to 0.1% of deposits and imposing steep interest rate hikes on major cryptocurrencies.
Mango Markets will be shutting down It is time for users to close their positions Mango v4 & Boost are winding down. Most borrowing on Mango will be economically unviable going forward Proposals are live & become executable on January 13, Monday 8PM UTC Details below⬇️
Higher Barriers for New Positions
Collateral requirements for new positions will increase tenfold, making it more challenging to enter the market. These measures aim to streamline the closure process.
A Devastating Exploit
The shutdown follows an October 2022 exploit by Avraham Eisenberg, who manipulated the MNGO token price by 1,000% using $5 million in USDC. This inflated collateral allowed him to drain $117 million from the platform.
Legal Actions and Fallout
Eisenberg faces fraud and market manipulation charges, with a potential sentence of 25 years. While he defended his actions as a “profitable trading strategy,” his governance proposal to retain part of the stolen funds was rejected.
Community Accepts Closure
The unanimous vote reflects the community’s decision to move on from Mango Markets, marking the end of the platform’s journey in the DeFi space.
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