MANTRA Chain: What You Need to Know
RWA Finance Chain, $500M Tokenized Real Estate Deal, $OM Outperformance, & More
We’ve discussed RWAs quite a bit recently; and this coverage is sure to continue, even with the market’s recent move upwards, and a potential widening of the scope of investable assets and enticing protocols. Recent events have ‘triggered’ some bullish activity in the markets, with the German government selling out of the way, and even some grain-of-salt rumors of China opening up to the possibility of lifting its BTC mining ban. The recent Trump debacle saw the former President’s odds of returning to the White House rise sub-9% to 71% overall, with many now instead calling it a match and moving on to speculate on who the VP pick will be. Prediction markets have definitely benefited the most from this situation, demonstrating a clear use case to be used both as a vehicle for speculation as well as a data point in fast-moving critical periods of time. This expected administration regime change could definitely be the driving force behind this recent market activity, which saw some trends and well-performing tokens proliferate, with others like TIA and NOT cooling off a bit.
One sector many remain optimistic about is RWAs, a term encompassing a variety of protocols that come in all shapes and sizes. Specifically, one token that has performed particularly well recently is that of MANTRA Chain (OM). The token is up 9% in the past day, 21% in the past week, and nearly 50% in the past 2 weeks. This performance is mostly off the back of news that the protocol inked a deal with UAE real estate giant MAG, announced on July 3rd. This deal will see $500M in property effectively tokenized, a substantial portion of MAG’s property portfolio to be allocated to blockchain usecases.
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Background on MANTRA
MANTRA aims to bring existing finance onchain, as opposed to creating net-new financial primitives from the jump. The protocol has a focus on both individuals as well as institutions, as evidenced by their notable partnership announcement. The protocol describes itself as a ‘Security 1st RWA Layer1’. This is actually very similar terminology to Kinto, an L2 we’ve covered in the past also describing itself as a security first chain for finance. This is where the similarities end, as MANTRA differentiates itself with its ability to adhere to real-world regulations, perhaps the most important aspect to get right in the RWA space and the hardest one at that. MANTRA is built on modular infrastructure, leveraging the Cosmos SDK and IBC-compatible. The protocol also will have its own native app on the chain upon launch.
MANTRA places an emphasis on authentic users, with multiple wallets and billing explicitly not allowed, and a KYC process is also implemented. This may turn away some degens, though this practice can also be observed for other protocols, like Kinto, among others. This process is done through Decentralized ID (DID), leveraging soulbound NFTs to link a user to a specific wallet. The reality is this kind of onchain identification enables new opportunities. Realistically there aren’t too many people, institutions, and users alike, comfortable with issuing or purchasing tokenized real estate shares or properties with large dollar amounts without some sort of KYC.
The OM token is already live, with a valuation approaching the $1B mark and a nearly 1:1 marketcap to FDV ratio. The token can be staked on Ethereum mainnet, BNB Chain, or Polygon for an estimated APR of 14.5% to 35% initially. Staking will incur a bonding period, and staking rewards are indeed paid out in OM tokens. Unstaking ‘early’ will incur a modest 2% penalty fee.
In addition, the native MANTRA app itself also has staking of other L1 assets, to include DOT, SOL, ETH, and MATIC upon mainnet launch. These are vaults built on top of Ethereum mainnet, not native deposits from these L1s, excluding ETH itself. Other assets include USDC, and potentially a representative Gold vault. The app will have its own native DEX to facilitate asset swaps and attempt to keep activity on the native app and chain, with CLOB (Central Limit Order Book) functionally included. Like any DEX, users will also be able to provide liquidity and share transaction fees.
The most significant development with MANTRA is its recently-announced strategic partnership with MAG. MAG is a prominent real estate developer boasting a UAE-based portfolio valued at over $5B (USD). The company has been in the business since 1978 with a rich history that has benefited from the rise of the UAE itself. While this is a great first step, MANTRA definitely doesn’t exclusively focus on real estate. Other tokenized asset possibilities for institutions that the protocol promotes include art, commodities, and more, all interchangeable and tradable on the chain’s MANTRA DEX.
"𝑊𝑜𝑟𝑘𝑖𝑛𝑔 𝑤𝑖𝑡ℎ 𝑀𝐴𝑁𝑇𝑅𝐴 𝑎𝑙𝑙𝑜𝑤𝑠 𝑢𝑠 𝑡𝑜 𝑙𝑒𝑣𝑒𝑟𝑎𝑔𝑒 𝑐𝑢𝑡𝑡𝑖𝑛𝑔-𝑒𝑑𝑔𝑒 𝑏𝑙𝑜𝑐𝑘𝑐ℎ𝑎𝑖𝑛 𝑡𝑒𝑐ℎ𝑛𝑜𝑙𝑜𝑔𝑦 𝑡𝑜 𝑒𝑛ℎ𝑎𝑛𝑐𝑒 𝑡ℎ𝑒 𝑣𝑎𝑙𝑢𝑒 𝑎𝑛𝑑 𝑎𝑐𝑐𝑒𝑠𝑠𝑖𝑏𝑖𝑙𝑖𝑡𝑦 𝑜𝑓 𝑜𝑢𝑟 𝑟𝑒𝑎𝑙 𝑒𝑠𝑡𝑎𝑡𝑒 𝑜𝑓𝑓𝑒𝑟𝑖𝑛𝑔𝑠. 𝑇ℎ𝑖𝑠 𝑠𝑡𝑟𝑎𝑡𝑒𝑔𝑖𝑐 𝑐𝑜𝑙𝑙𝑎𝑏𝑜𝑟𝑎𝑡𝑖𝑜𝑛 𝑖𝑠 𝑝𝑖𝑣𝑜𝑡𝑎𝑙 𝑎𝑛𝑑 𝑓𝑜𝑟𝑤𝑎𝑟𝑑-𝑓𝑎𝑐𝑖𝑛𝑔 𝑎𝑠 𝑤𝑒 𝑐𝑜𝑛𝑡𝑖𝑛𝑢𝑒 𝑡𝑜 𝑖𝑛𝑛𝑜𝑣𝑎𝑡𝑒 𝑎𝑛𝑑 𝑙𝑒𝑎𝑑 𝑖𝑛 𝑙𝑢𝑥𝑢𝑟𝑦 𝑟𝑒𝑎𝑙 𝑒𝑠𝑡𝑎𝑡𝑒 𝑑𝑒𝑣𝑒𝑙𝑜𝑝𝑚𝑒𝑛𝑡.”
-Talal Moafaq Al Gaddah, CEO of MAG
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