$MANGO | Tuesday May 2, 2023
Polygon’s new zkEVM chain is currently a ghost town with only ~$2M in TVL.
At low scale, Zk-rollups do not provide much benefit in terms of gas fees. However, as volume increases, fees decrease:
It’s likely Polygon will want to create some sort of incentives program to jump start development, volume, and liquidity to get as much volume as possible on their zkEVM chain to bring fees down to a competitive level as quickly as possible.
In doing so, some of the early DeFi projects on zkEVM may see large valuation increases as their TVL balloons due to incentives.
One such project may be Clober. Clober is a fully on-chain order book DEX.
CLOB stands for Cental Limit Order Book which is an order book model that allows users to put in limit orders.
Clober does not have a token, however, you can get exposure to its upside by purchasing and staking $MANGO.
The Mango Farmers Club (MFC) is a decentralized autonomous organization (DAO) dedicated to promoting the adoption of Central Limit Order Book (CLOB) infrastructure on the Polygon zkEVM ecosystem.
You can read the documentation here: https://docs.mangofarmers.club/
Essentially, $MANGO stakers receive their share of 0.1% of the MANGO Treasury per day. The Treasury is funded by trading fees on Clober.
You can purchase $MANGO on Clober with USDC.
You can stake $MANGO here: https://www.mangofarmers.club/
To do so you will need to bridge over ETH from Ethereum mainnet to Polygon zkEVM using the Polygon zkEVM bridge here: https://wallet.polygon.technology/
At this point in time, $MANGO is a micro cap with a highly illiquid market, trading at a <$1M fully diluted valuation.
Should Polygon zkEVM reach north of $100M TVL, which we feel is likely, and Clober becomes a core ecosystem DEX, a $MANGO valuation in the $10M - $15M market cap range is completely realistic.
This is a high risk, high reward play only suitable for a small position sizing of ~$250 - $5k given the illiquid nature of the $MANGO token.
This play may take a long time to play out as Polygon zkEVM is still empty, and of course it may not work out at all.
Disclosure: Sistine Research has taken a very small position in $MANGO at a ~$1M FDV.