Following the recent launch of Merchant Moe on Mantle Network, we decided to host another episode of Showcase Radio featuring two key members from the Merchant Moe team, DavidFi (@DavidFi_) and Levi. Mantle's Veer (@0xVEER) and Edmund (@Defi_Maestro), prepared with a range of insightful questions, help uncover the latest advancements of Merchant Moe and the broader DeFi landscape.

What is the relationship between Merchant Moe and Trader Joe, and what are their key differences?

L: Trader Joe and Merchant Moe are closely related, with Merchant Moe being a franchise of the Trader Joe decentralized exchange (DEX). If you have used Trader Joe on Avalanche or Arbitrum, you'll find a familiar experience with Merchant Moe, as they share the same development team and tech stack. This similarity ensures that Merchant Moe inherits Trader Joe's strengths, particularly its friendly and efficient user interface (UI).

Merchant Moe is designed explicitly for Mantle Ecosystem and includes unique features. A notable difference is the introduction of the $MOE token, which is exclusive to Merchant Moe and aligned with Mantle. Staking $MOE tokens allows users to accrue $veMOE, which is voting power within the protocol. Essentially, users can influence $MOE rewards by voting to increase emissions weighting directed at various liquidity pools.

Why did you decide to create a native DEX on Mantle Network instead of adding Mantle as an additional chain on Trader Joe?

D: Mantle is a young and dynamic ecosystem that benefits greatly from having its own dedicated ecosystem DEX. This is crucial for supporting both the growth of the chain and the DEX itself. Our experience with expanding into different ecosystems, particularly with the launch of Trader Joe on Avalanche, has shown us the significant impact native DEXs have on new projects. Understanding the importance of a native protocol, we believe that Merchant Moe is the ideal solution for bolstering Mantle Ecosystem. Merchant Moe isn't just tapping into the existing liquidity and volume, it offers a product designed to foster collective growth across the entire ecosystem.

What is the role of Merchant Moe in Mantle Ecosystem?

D: We aim to play a pivotal role in Mantle Network's DeFi journey. We are in a strong position to contribute significantly with a team that brings a wealth of experience from a very mature protocol. Thanks to our team's established presence, Mantle Network stands to benefit from the extensive support we have gathered from various protocols and projects. This support is key to our objective of being experienced partners for new projects that enhance the existing ecosystem and attract additional projects, promoting a thriving and dynamic environment within Mantle Network.

What is a liquidity book, and how does it improve the user experience for a default user?

L: We plan to integrate technology such as our liquidity book, our concentrated liquidity protocol, into Merchant Moe very soon. This addition is expected to enhance the trading experience significantly by reducing slippage and increasing fee earnings for liquidity providers.

The idea behind the liquidity book revolves around capital efficiency. In a standard, classic pool, liquidity is spread over a wide range, which isn't very capital-efficient. However, with concentrated liquidity, you define a specific range, thereby enhancing capital efficiency. For instance, if you choose to provide liquidity for the $MNT within the $0.60 to $0.80 range, your capital would be utilized much more efficiently than if it were spread across a broader range from zero to infinity. This increases capital efficiency and, in turn, allows you to earn higher fees due to the more focused allocation of your funds.

What are the advantages of staking $MOE on Merchant Moe?

L: Staking $MOE tokens on the Merchant Moe platform unlocks two main utilities, $veMOE and $sMOE. To clarify, once you stake $MOE tokens, you accumulate both — you don't have to choose from one or the other.

The first utility concerns acquiring voting power through $veMOE. When you stake $MOE, you begin accruing $veMOE. This $veMOE is used for voting to influence the distribution of $MOE rewards across various liquidity pools. Staking $MOE, therefore, empowers you to shape the liquidity landscape of Merchant Moe. You can vote to boost rewards for specific liquidity pairs you're interested in, or support core pairs to strengthen the overall liquidity. While the team sets a whitelist of eligible farms for voting to optimize the process, the decision on reward allocation lies with the community, reflecting a decentralized approach.

Then, we have $sMOE, which is our protocol fee-sharing mechanism. Whenever a trade is made through the platform, the protocol collects a small fee, a portion of which is allocated to $MOE stakers. Although $sMOE has not been fully activated yet, it is accruing fees from all trading activity on Merchant Moe. These accumulated fees will be distributed in the first $sMOE payout. The amount each staker receives from this payout will be proportional to their share in the staking pool. So, by staking $MOE, participants earn real yield from the protocol's trading fees.

What are the long-term goals of Merchant Moe within the DeFi ecosystem?

L: Merchant Moe aims to be the cornerstone DEX of Mantle Ecosystem. The goal is for Merchant Moe to become synonymous with Mantle, being the first choice for trading and liquidity provision. While still early in our journey, we're focused on building towards this vision. This involves a strong emphasis on forming partnerships and cross-community collaborations, leveraging the dynamic interactions and opportunities within Mantle Ecosystem, including various protocols, LSPs, RWAs, and more. The core objective is establishing Merchant Moe as the central liquidity hub within the ecosystem.

How do you plan on creating an engaging community?

L: Merchant Moe is focusing on a community-driven approach as part of our long-term strategy. We've parlayed the idea of Mantle Journey to create our latest initiative, "The Journey." The initiative is comprehensive, encompassing various aspects such as roles, partnerships, exclusive chats, and possible direct interactions with the team. We've created this initiative to create a dedicated and engaged community, which is crucial for attracting and retaining users.

To ensure you get all the valuable insights shared in this AMA, you can find the full recording on Mantle's X/Twitter. Additionally, if you have any questions regarding anything discussed in this AMA, head over to our Discord and ask away. For the most recent updates on Merchant Moe, be sure to follow their X/Twitter.