Mantle, the DAO-led web3 ecosystem, has announced the launch of its Mantle Liquid Staking Protocol (LSP), adding to its expanding DeFi ecosystem. The protocol offers users a new way to engage with Ethereum’s proof-of-stake (PoS) validator network, introducing the concept of Mantle Staked Ether (mETH), a value-accumulating receipt token.
The Mantle LSP is a permissionless and non-custodial Ethereum liquid staking protocol, operating on Ethereum L1 and governed by Mantle. It marks a significant addition to the Mantle Ecosystem, following the Mantle Network L2. The introduction of mETH is seen as a pivotal step in their protocol.
The genesis of Mantle LSP started with a proposal in a Mantle forum on July 14, 2023. Following the acceptance of the Mantle Governance Proposal MIP-25, the staking of Mantle Treasury ETH was approved, leading to the phased deployment of Mantle LSP. This culminated in the protocol’s full operational launch on Dec. 4, transitioning it into a Permissionless Mode.
Mantle LSP allows users to stake ETH and receive mETH, a token representing their staked value and accumulated rewards. Users can also unlock additional yield opportunities within the Mantle Ecosystem. The protocol stands out for offering instant and sustainable rewards, with the ETH to mETH exchange rate being deterministically calculated to mitigate the impact of stake size on slippage. Additionally, mETH is available for trade on various exchanges, with its pricing governed by market dynamics.
Mantle emphasizes its commitment to user experience, security, and yield optimization with the LSP. The protocol features a streamlined architecture, focusing on the ETH to mETH conversion process on L1, and incorporates robust risk management strategies, including non-custodial core smart contracts and off-chain services. The security framework involves dividing responsibilities among various roles to ensure the safeguarding of staked ETH within smart contract addresses.
With the launch of Mantle LSP, the ecosystem aims to enhance its DeFi offerings by exploring the adoption of mETH across various applications within its ecosystem and beyond. This expansion is expected to bolster the utility and efficiency of mETH, contributing significantly to Mantle’s growth in the DeFi space.
The broader Mantle ecosystem, anchored in Ethereum technology, now includes the Mantle Network, an Ethereum layer 2 (L2) solution, Mantle Governance, a decentralized autonomous organization (DAO), and Mantle Treasury, one of the largest on-chain treasuries. The ecosystem is facilitated by the Mantle token (MNT), which serves as a product and governance token.
The introduction of Mantle LSP and mETH is poised to further solidify Mantle’s position in the Ethereum-based DeFi landscape, providing users with innovative ways to participate in Ethereum’s PoS validator network and expand their engagement with the broader DeFi ecosystem.