Decentralized Finance and Fragmented Liquidity

Decentralized finance (DeFi) faces challenges with fragmented liquidity, leading to higher costs and inefficiencies as blockchains operate in isolation.

Introducing Mango Network

Mango Network, a new Layer 1 blockchain, claims to run several virtual machines: Ethereum’s EVM, Solana’s SVM, and Facebook’s MoveVM on a shared system. This setup allows apps and users from various blockchain communities to connect without relying on risky third-party tools.

Recently, Mango launched a significant airdrop to reward early users, boasting a testnet capable of over 297,000 transactions per second for high-speed performance.

Yet, questions arise: can a single blockchain connect multiple virtual machines, enable seamless asset movement, process transactions quickly, and maintain security? Some believe Mango could democratize access to liquidity and broaden DeFi’s reach, but critics express concerns about its complexity and potential instability.

Significance of Mango Network

Mango Network is designed to transform how developers create and users interact with decentralized applications across ecosystems. Unlike traditional blockchains that utilize a single type of virtual machine, Mango supports multiple VMs running concurrently within one network.

Mango facilitates the use of Ethereum EVM for Solidity-based apps, MoveVM for Move language applications, and Solana SVM for Rust-based programs. This innovation creates one platform for developers to utilize their preferred tools, allowing users to engage with multiple applications via one account, avoiding the risks and delays associated with cross-chain interactions.

In a community-driven approach, Mango distributed 5% of its MGO token supply to early adopters through an airdrop, enabling users to trade, stake, and manage their tokens prior to the Token Generation Event (TGE). Following a successful 13.5 million dollar Series B funding round in February 2025, Mango plans to enhance security, develop its ecosystem, and support developer onboarding. The vision of unified infrastructure and cross-VM communication has the potential to redefine blockchain capabilities.

Challenges in DeFi Due to Fragmented Liquidity

Current blockchains like Ethereum, Solana, and BNB Chain confine their tokens and apps within isolated networks. This isolation hinders the movement of funds, creating small liquidity pools and complicating user experiences through the necessity of utilizing third-party bridges and wrapped tokens, which entail additional risks.

This fragmentation translates to increased workload for developers who either limit their audience by focusing on one chain or face the complexity of deploying applications across multiple chains. Users must manage different wallets and interfaces while incurring extra fees, resulting in a disjointed experience in a seemingly global financial system.

Solutions by Mango Network to Liquidity Fragmentation

Mango Network addresses these issues by implementing a communication protocol that synchronizes operations across VMs. This design allows for the integration of various development components and fosters a unified user experience with quicker and safer cross-chain interactions. The blockchain’s shared global state means all VMs access the same ledger, eliminating incompatibility and the need for wrapping and bridging tokens.

Assets deposited in one protocol can be seamlessly used by another, regardless of the programming language or VM it operates on. This eliminates the need for token duplication or manual asset transfers as there can be fluid interactions between protocols created on different VMs.

Performance Capabilities of Mango Network

Mango Network aims to support up to 297,450 transactions per second with instant finality, promising rapid confirmation of transactions. Such capabilities could accommodate numerous decentralized applications and millions of users without congestion, pending validation during its mainnet launch.

During testnet campaigns, Mango processed over 120 million on-chain interactions across 500,000 wallets. With a parallel execution engine based on the Move language, Mango’s operational efficiency is designed to maximize throughput.

Despite the promising testnet results, real-world application during the mainnet launch will pose challenges, including user behavior, network threats, and sudden demand surges, potentially revealing vulnerabilities in performance or security. The true measure of Mango’s success awaits its TGE and subsequent mainnet launch, as it strives to elevate performance benchmarks in DeFi infrastructure.