Mantle launches liquid staking protocol on Ethereum Mainnet
Mantle’s liquid staking protocol (LSP) launched on the Ethereum blockchain.
The launched LSP is a non-custodial liquid staking protocol.
The Mantle liquid staking protocol is governed by its decentralized autonomous organization (DAO).
Decentralized autonomous organization Mantle has introduced a groundbreaking liquid staking protocol on the Ethereum mainnet. This move follows a successful deployment of a Layer 2 network and aims to provide users with a new method of participating in-network staking.
Mantle’s approach addresses concerns about the concentration of staked assets in major providers like Lido, Coinbase, and Binance, offering an alternative solution through their liquid staking derivative, Mantle-staked ether (mETH).
Mantle’s liquid staking protocol on Ethereum
The liquid staking protocol (LSP) launched by Mantle on the Ethereum mainnet is a non-custodial protocol that allows users to deposit ETH and engage in network staking via validator nodes while receiving Mantle-staked ether (mETH) as a token reflecting their stake.
Mantle’s LSP began its journey with the deployment of mainnet contracts in an exclusive alpha phase in October, subsequently transitioning to a permissionless phase to broaden access and participation. This innovative protocol is governed by the Mantle decentralized autonomous organization, emphasizing a community-driven approach to decision-making.
Addressing stake concentration with mETH adoption
One of the primary motivations behind Mantle’s liquid staking protocol is to tackle the concentration of ether stakes within 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 Mantle-staked ether (mETH) in the Liquid Staking and DeFi (LSDfi) ecosystem. The protocol aims to contribute to the solution by providing users with more options and enhancing capital efficiency to maintain sustainable yields. The Mantle DAO, empowered by the approval of governance proposal MIP-25 in August, has decided to stake ether from its treasury, adding to its existing $80 million in ETH staked with Lido Finance.
As a significant player in the crypto space, with assets totalling $470 million in ether and over $200 million in stablecoins, Mantle’s strategic approach to liquid staking marks a pivotal development in the ongoing evolution of decentralized finance on the Ethereum network.
