The Manta network is a plug -and-play privacy protocol and its place in Defi.

Reasons for Defi’s popularity

The rise of DeFi in 2020 has led to an increasing number of decentralized protocols, including DEX, lending platforms, insurance products, and more, and has created a fairer environment for ordinary users. DEXs, especially those based on AMM (Automated Market Maker) like Uniswap, with higher capital efficiency and fairer price discovery, seem to be ideal solutions to centralization problems.

Decentralized Financial Projects (DeFi) — blockchain-based applications and services that create an ecosystem within a single network — are gaining popularity. The main advantages of decentralized finance are anonymity, work without strong regulation, distribution of all system profits among users and speed of operations.Among the risks is the lack of an insurance system. And yet, DeFi can become an alternative to the usual financial sector, analysts admit.

DeFi is a decentralized public ecosystem of blockchain-based financial applications and services (mainly Ethereum cryptocurrencies). It allows you to use almost all services, including lending, deposits, borrowing and trading within the ecosystem.The main challenge for DeFi when they emerged was the ability to become an alternative to the banking sector with strong regulation and control.

In addition,such services are more reliable,because there will always be operators ready to make a deal with a consumer.

Given the growing popularity of DeFi projects, lending and deposits will eventually move into this area.Retail clients are already leaving banks as DeFi rates are much higher.

What is Uniswap

Uniswap is a set of computer programs that run on the Ethereum blockchain and allow you to decentralize the exchange of tokens. Uniswap works with unicorns (as the logo suggests).

On Uniswap, traders can exchange Ethereum tokens without trusting anyone with their funds.

At the same time, anyone can provide their cryptocurrency to liquidity pools, which play the role of special reserves. Traders receive a commission for providing their funds to the pools.

MantaSwap,private AMM DEX

In an effort to address these privacy concerns in decentralized finance, the Manta Network is poised to launch its first products, including a “private Uniswap” called MantaSwap

The Manta Network is a plug-and-play privacy protocol built to serve the entire DeFi stack. Our products include MantaPay, a multi-asset decentralized payment scheme, and MantaSwap, an AMM-based private decentralized anonymous exchange.

MantaSwap can hide trader addresses, transaction amounts and asset types, preventing others from tracking them.

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It also ensures the confidentiality of liquidity providers. In addition, the liquidity token that the liquidity provider receives is also private and traded. The Manta team chose the AMM because its simplicity of design increases gas efficiency and capital investment, so MantaSwap can maintain privacy without sacrificing efficiency.

AMM is the latest outstanding DEX protocol

AMM is one of the most creative DeFi innovations in recent years and is now the most widely used DEX protocol. Unlike conventional exchanges that rely on order books, AMM DEX uses mathematical formulas to calculate asset prices.

AMM is the newest and most prominent variant of the DEX protocols. Unlike regular exchanges, they don’t rely on order books, instead using mathematical formulas to calculate asset values.

AMMs also provide liquidity from multiple pools, eliminating the need for a user willing to trade on the other side. Trading is carried out through interaction with smart contracts or peer-to-peer contracts that provide the price and liquidity required to execute trades.

The new DEXs based on AMM make exchanges between cryptoassets much easier, which explains the sharp rise in their popularity since the summer of 2020.

Ethereum-based Uniswap (UNI), heralded as the first truly decentralized AMM, launched in late 2018 and has conquered the cryptocurrency world for several years with its simple user interface and broad listing system. Uniswap is currently holding the leading position in the world among the DEX in terms of trading volume.

Uniswap spawned several side projects, one of which was SushiSwap (SUSHI) - AMM, which launched vampire mining and eventually established itself as Uniswap's main competitor.

As an integral part of the Decentralized Finance (DeFi) ecosystem, Automated Market Maker (AMM) -based Decentralized Exchanges (DEXs) have gained widespread support thanks to a resurgence of interest in blockchain and distributed ledger technology in general. Most notably, the six largest AMMs — Uniswap, Balancer, Curve, DODO, Bancor, and Sushiswap Instead of negotiating buy and sell sides, AMMs use a peer-to-peer method and algorithmically determine the price of an asset using a so-called save function. Compared to centralized exchanges, AMMs show clear advantages of decentralization, automation, and constant liquidity.

Based on Substrate, Manta takes advantage of the interoperable ecosystem that Polkadot offers and can offer plug-and-play privacy solutions for other Polkadot projects.

Features of Manta Network (MANTA)

The Manta Network, launched in 2020, is a Web 3.0 grant recipient. The project is developing a privacy-focused decentralized exchange (DEX) aimed at working as a Polkadot (DOT) parachain.The Manta Network plans to roll out its testnet in March 2021.

Manta plans to participate in Polkadot’s parachain auctions to launch its main network around the third quarter of 2021. The team is positioning their first product, called MantaSwap, as a decentralized exchange focused on speed and privacy, which are achieved through the use of zkSNARK technology.

What is the Manta Network? How Manta Can Implement Private DeFi?

The main logic behind Manta is to issue private coins / tokens with stablecoins and other underlying tokens on a contract basis at a 1: 1 minting cost ratio. In addition, a decentralized private exchange platform can support the exchange of these privacy tokens.

Manta Platform Overview

The Manta network mainly consists of two protocols: the decentralized private payment protocol and the decentralized private token exchange protocol

• The Decentralized Anonymous Payment Protocol (DAP) is based on zk-SNARK. It allows users to exchange Polkadot and its Parachain tokens for corresponding private tokens, pay with privacy tokens, and redeem base coins from private tokens.
• The decentralized anonymous exchange (DAX) protocol is based on AMM and zk-SNARK. Users can anonymously exchange private versions of tokens on the platform with each other. The pricing method in the decentralized private token exchange protocol is in line with the mainstream AMM. Manta’s token revenue model is based on discount and redemption of swap fees and transaction fees. In the future, the team will also develop products such as Manta-based synthetic stablecoins.

Conclusion and perspectives

Due to technical difficulties, no decentralized exchange platform protects user privacy from start to finish in the current Polkadot ecosystem, even across the cryptocurrency world. Manta perfectly fills this gap. Since Manta covers both decentralized private payments and decentralized private transactions of assets of the environmental network Polkadot, it is indispensable for users who need privacy protection, especially institutional users.

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