Mantle, a decentralized autonomous organization, has recently launched a liquid staking protocol (LSP) on the Ethereum mainnet. This new protocol allows users to participate in network staking by depositing ETH and receiving Mantle-staked ether (mETH) as a token reflecting their stake. The protocol is non-custodial and is governed by the Mantle decentralized autonomous organization, emphasizing a community-driven approach to decision-making.
The motivation behind the launch of this liquid staking protocol is to address concerns about the concentration of staked assets in major providers such as Lido, Coinbase, and Binance. According to Jordi Alexander, Chief Alchemist at Mantle, the concentration issue results from a feedback loop of increasing name recognition and use case. To counter this, Mantle is focusing on the adoption of mETH in the Liquid Staking and DeFi (LSDfi) ecosystem. The protocol aims to provide users with more options and enhance capital efficiency to maintain sustainable yields. The Mantle DAO has also decided to stake ether from its treasury, adding to its existing $80 million in ETH staked with Lido Finance.
The introduction of Mantle’s liquid staking protocol is a significant development in the ongoing evolution of decentralized finance on the Ethereum network. With assets totaling $470 million in ether and over $200 million in stablecoins, Mantle is a major player in the crypto space. Their strategic approach to liquid staking marks a pivotal moment in the DeFi landscape on the Ethereum network.
The protocol first began its journey with the deployment of mainnet contracts in an exclusive alpha phase in October, and has since transitioned to a permissionless phase to broaden access and participation. This move comes after a successful deployment of a Layer 2 network and aims to provide users with a new method of participating in-network staking.
By addressing concerns about stake concentration and providing users with alternative solutions, Mantle’s liquid staking protocol represents an important step forward in the DeFi space on the Ethereum network. As decentralized finance continues to evolve, innovations like this will play a crucial role in shaping the future of the industry.