What Is Mugen Finance (MGN)? Complete Guide & Review About Mugen Finance

What Is Mugen Finance (MGN)?

The Idea for Mugen Finance was born after the collapse of many CeDeFi businesses as well as several defi protocols. Shortly after this development started, with the intention of creating a more transparent and diverse set of yield strategies. Allowing users to control where these funds go and at what proportion. As they develop they will move away from heavy influence from the core team and towards a more decentralized existence.

Mugen Finance Coin operates as a yield aggregator using a two token system in order to help individuals gain access to a more diverse set of yields. There are 3 key parts to the protocol. The Mugen and xMugen tokens and the treasury

Important Points Table Of Mugen Finance

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Decentralized, simple, and transparent financial tools

Mugen Finance is transforming the yield management industry by connecting multiple public Decentralized Apps (DApps) and the messaging protocol of Layer Zero. Allowing anyone to generate yield by simply holding Mugen. Representing a variety of yield sources from different chains, with different strategies

They have the potential to unlock large, untapped revenue sources for protocols and users alike. Through its bonding curve design, and protocol-owned treasury run through governance Mugen will bridge the gap between multiple protocols and users.

The Goal

Mugen was created with the goal of allowing users to collect yields from many different protocols and chains in one simple way.

The protocol team also intends to provide other products outside of the core yield strategy, that do not require Mugen to use. The first such example is cross-chain swaps with Uniswap V3 and Stargate Finance.

Strategies

Building on top of the best projects in the space in order to generate the most attractive yield possible while controlling risk.

Diversifying between strategies that implement both bullish and non-directional stances in order to minimize downside.

Mugen Finance Services

Providing strong yield and balanced risk between bullish price-action and non-directional strategies.

Deposit

Deposit USDC into yield aggregator, utilizing both price-bullish and non-directional strategies.

Efficient strategies with low fees

They use Arbitrum to provide a low-cost, high-performance, and secure platform for strategies.

Arbitrum

Arbitrum technology is an L2 expansion Optimistic Rollup, a remedy to Ethereum network congestion and transaction cost crisis.

Efficient strategies with low fees

They use Arbitrum to provide a low-cost, high-performance, and secure platform for strategies.

Tokenomics

Mugen Finance will start on launch with 0 tokens in total. All tokens that will ever be generated for the protocol will be done so through depositing into the treasury. The pricing model for minting is based on protocol TVL. Each time a user deposits funds into the treasury it increases the price. Minting is set to start at approximately 12-13$ and the current minting price can be checked through the contract.

A negative exponential curve was chosen to allow for early individuals to be rewarded and at the same time not drive away later investments by increasing the price too quickly. Over time the curve will flatten out and allow for more individuals to enter the ecosystem.

Token Distribution

All Tokens that come into existence will be distributed to depositors. The team is unable to mint new tokens. Depositing into the treasury is the only way. While token inflation is infinite and investors can deposit at any time the mint price will always increase while the market price will not. Creating arbitrage opportunities if individuals decide to do so. This allows for inflation only when there is enough demand to meet that inflation.

Roadmap

Phase 1.0

• Launch initial strategies
• Implement staking
• Increase liquidity

Phase 2.0

• Add more strategies
• Increase revenue streams

Phase 3.0

• Cross-chain implementations
• Lending and borrowing functionality for xMugen

Long term

• Grants program
• Continuous liquidity bootstrapping
• Increased Decentralization