💭Proof of Liquidity FAQ

These are the FAQ for Proof of Liquidity . To learn more about being a Delegator visit Delegator Guide. To learn more about being a Collator, visit the Collator Guide.

General

Which pairs will be eligible for PoL?

Initially, MGX-KSM will be eligible for PoL. After a short transitionary period, more pairs will be added.

Delegators

Can I stake with multiple collators?

Yes, you can delegate your stake to multiple collators.

How many days are required for unbonding?

As in Kusama, 7 days are required to perform unbonding on Proof-of-Liquidity.

Is there a maximum number of delegators per collator?

As of 2023-03-28, the maximum is 12 delegators per collator. We expect this number to rise within a few runtime upgrades.

Collators

Node Operations

Can I run a node for Mangata?

Everyone can run a node. Selection into the active set is permissionless and dependent on the most liquidity put at stake.

How many nodes will be in the active set?

As of July 2023, a maximum of 25 nodes can be in the active set. Our mid-term ambition is to have 100, but this is subject to technical challenges we need to overcome.

How are nodes selected for PoL?

The nodes with the highest liquidity will get selected for collation.

Can a collator run on multiple liquidity pairs?

No. Each node selects a single type of liquidity when joining the candidate pool. But node operators are free to set up additional nodes if they want to cover other pairs. We are working to make multiple pairs possible in the future.

How many delegators can a single node have?

We don’t know the practical limit yet.

Why does Mangata have a network of collators? Most networks don’t need a lot of collators.

In general, it is considered that parachain collators only produce valid blocks for relay chain Validators to validate against them. The idea is that Validators provide security.

In the case of Mangata, Collators protect against an additional attack vector that Validators do not: front-running. This is an economic attack vector that is generally not considered central to running a blockchain. But in practice, front-running and MEV increasingly degrade the quality of a network. Read more here: Miner Extractable Value: The Biggest Thorn in DeFi

To protect against this network, we developed Themis Protocol, which prevents front-running by introducing a novel method to split block production between nodes. This introduces the need for Collators also to build an actual network.

Node Economics

How do I get liquidity?

You can acquire liquidity by adding it to the DEX.

Add & Remove Liquidity

What is the minimum bond for collators?

The minimum bond is 3m MGX in value.

How much stake do I need to get into the active set?

To find out how much your LP is worth, check out: How to check the value of an LP token. For example, if there is a total of 1T LP tokens and the MGX side of the liquidity pool is 1M MGX, then the total pool is worth 2M MGX, and 1 LP token is 2M / 1T = 0.002 MGX.

How many rewards do node operators get?

Node operators get 20% of collation rewards. Collation rewards are 240m MGX per year. That’s 20m MGX per month, split up amongst all collators in the active set.

How are the rewards in PoL split up?

The rewards of a node are dependent on the successful collation of blocks (era points). The rewards of individual delegators are dependent on their share of the liquidity within the node.

How often are rewards paid out?

At the end of each session, about every 4 hours.

How do different pairs get valued against each other?

Only MGX-based liquidity is allowed for Proof-of-Liquidity. The amount of MGX in the LP can thus be compared and determines the relative value of the pools.

Are there penalties or slashes?

We have identified slashable behavior, but have not yet identified it as slashable. We want to gather more real-world data before making further design decisions.

Will there be sponsored collators similar to Kusama’s 1000 Validator Programme?

We consider setting up a similar program.

I am seeing an “1010: Invalid Transaction: Transaction has a bad signature” error.

This error most likely happens because you are not in the tab with the UI Workaround. Please follow the instructions and links in the appropriate tabs.

Open Questions

• Geographical Decentralization vs. Missed Blocks vs. Missing Transactions: How does geographical decentralization affect the network, when blocks are missed that are needed to decrypt transactions.

• What are the actual hardware requirements?

• is scheduleBondMore AND executeBondMore really needed or could this be compressed into a single extrinsic

Open Issues

• Medium

  • Assign a few collators to run archive nodes

  • Figure out correct firewall setup

• Non critical

  • Set Keys → make sure there is a Trello task to keep track of this

  • Testnet is called “Local Testnet” (Trello)

  • MGA are now shown in account balances on the developer portal

• Investigating: Only a single peer?

Reported Warnings

1. Got this warning during compiling. The code is compiling, so not a big deal. I think that the Cargo is type-checking the code. Probably a good idea for devs to update the code to clean up the unused imports. Compiling cumulus-client-service v0.1.0 (<https://github.com/mangata-finance/cumulus?branch=mangata-dev-v4#ccd16b24>) warning: unused import: super::*--> runtime/src/lib.rs:1191:6 | 1191 | use super::*; | ^^^^^^^^ | = note:#[warn(unused_imports)] on by default January 20, 2022 8:16 PM