MANTRA Incubator Project Showcase: Mansa
July 25, 2024
Hey Sherpas! We’re back with yet another exciting update from our Incubator Project Showcase series.
As you may already know, our Incubator Program continues to record high participation from passionate builders looking to build solid projects within the RWA tokenization space.
We explored Pyse and Estate Protocol in the previous showcases, delving into both projects’ groundbreaking approaches to tokenization in the green energy and real estate industries, respectively.
Following that, we shift our focus to the third MANTRA-incubated project in Cohort 1: Mansa.
Mansa provides an innovative platform that could potentially transform trade finance and cross-border payments through tokenization. The project is addressing a critical gap in global financial infrastructure by leveraging blockchain technology to optimize trade flows.
In this showcase, we’ll take a deep dive into how Mansa aims to streamline trade processes, reduce costs, and enhance transparency for both businesses and investors. By integrating into the MANTRA ecosystem, Mansa will unlock the potential of trade finance assets towards redefining global trade finance.
What Problem Does Mansa Tackle?
The traditional financial system often needs to meet the needs of emerging markets. High risk, slow processes, and limited access to capital hinder economic growth and development.
The downfall of prominent DeFi protocols, like Anchor, combined with the insolvency of key asset managers, marked the end of the ‘easy yields’ era from 2020–2022. This period was defined by easily attainable yields and often overlooked risks associated with DeFi protocols.
It’s imperative to finance tangible assets producing genuine revenue and unaffected by crypto market fluctuations to secure genuine yields in DeFi. Optimal yield opportunities exist predominantly in emerging markets. Mansa addresses these challenges by tapping into the potential of DeFi to bridge the gap between global and local financial systems.
With a staggering USD 2.5 trillion annual credit gap in emerging markets, there’s a pressing need for alternative funding sources. Mansa aims to fill this void by democratizing finance in emerging markets to provide efficient and accessible financial solutions.
Mansa’s Proposed Solution
Mansa is a real world asset (RWA) DeFi protocol that generates yield across trade finance and cross-border payments in emerging markets.
Mansa aggregates liquidity from diverse global capital providers, providing attractive investment opportunities and vital financing solutions to businesses in these regions. Their solution offers invoice financing for blue-chip multinational companies and transactional working capital to licensed money operators.
The protocol’s core offerings include three pools with the highest risk-adjusted yield in DeFi: 1) Trade Finance: 20% APY, 37 days lock up, 2), Cross Border Payments: 25% APY, 10 days lock up, 3) Stablecoin Liquidity: 36% APY, 10 days lock-up.
By focusing on short-term investment windows and offering competitive yields, Mansa addresses the challenges of traditional finance and provides more sustainable returns through RWAs.
What Market Gaps Are They Filling?
Mansa differentiates itself with a unique stance on investment timelines, offering a balanced strategy that reduces risk while enhancing returns. This focus ensures swift liquidity and enables investors to earn attractive yields.
Through a direct lending model, Mansa sidesteps unnecessary intermediaries by channeling funds straight to blue-chip multinationals or licensed money operators. This ensures faster transactions, efficient fund utilization, and maximizes returns for investors.
Furthermore, Mansa is a protocol, not a marketplace, as are most RWA projects. There’s a huge opportunity in partnership, not competition. Mansa aims to forge strong connections with these marketplaces, leveraging them as a source of liquidity to offer sustainable real yield to their users.
What Is the Project’s Vision?
The
vision of the Mansa project is to become the pioneer in short-term credit and the primary destination for DeFi and institutional investors to bring real yield onchain.
Why MANTRA?
Mansa’s vision of democratizing finance in emerging markets aligns seamlessly with MANTRA’s mission to unlock the potential of real world assets (RWAs) onchain.
MANTRA’s deep commitment to regulatory compliance, alongside its focus on innovation in the industry, is essential for Mansa to safely navigate the regulatory complexity in emerging markets.
Moreover, MANTRA’s growing ecosystem of partners and developers provides a fertile ground for Mansa to expand its investor base and accelerate its growth trajectory. The synergy between Mansa and MANTRA is evident in our shared vision for a decentralized future where financial services are accessible to all.
By combining Mansa’s unique solution with MANTRA’s RWA-focused L1 blockchain infrastructure, we’re well-positioned to shape the future of global trade finance.
The MANTRA ecosystem is excited to support Mansa’s mission to revolutionize short-term credit in emerging markets and bring tangible yield onchain.
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The MANTRA Incubator program aims to lay the groundwork for innovation in the Web3 space, enabling promising dApps, projects, and builders to leverage resources, networks, and a nurturing environment in one of the most vibrant crypto scenes globally.
Through the program, we provide a robust platform to ensure the success of the most innovative and distinguished projects that will receive a comprehensive suite of benefits, including seed investment, expert guidance, global networking opportunities, and technical support.
Learn more about the Incubator program here: mantrachain.io/ecosystem/incubator.
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