- Mantle’s Liquid Staking Protocol (LSP) has been launched on the Ethereum blockchain.
- The launched LSP is a non-custodial liquid staking protocol.
- The Mantle Liquid Staking Protocol is governed by the Decentralized Autonomous Organization (DAO).
Mantle, a decentralized autonomous organization, has introduced a groundbreaking liquid staking protocol to the Ethereum mainnet. This move follows the successful deployment of the Layer 2 network and aims to provide users with new ways to participate in staking within the network.
Mantle’s approach addresses concerns about the concentration of staking assets from major providers such as Lido, Coinbase, and Binance and provides an alternative solution through its liquid staking derivative, Mantle-staked Ether (mETH).
Mantle’s Ethereum Liquid Staking Protocol
The Liquid Staking Protocol (LSP), launched by Mantle on the Ethereum mainnet, allows users to deposit ETH and participate in network staking through validator nodes, while creating Mantle Staking Ether (mETH) with a token that reflects their stake. It is a non-custodial protocol that allows you to receive.
Mantle’s LSP began its journey with mainnet contract deployment in an exclusive alpha phase in October, before moving to a permissionless phase to expand access and participation. This innovative protocol is governed by the Mantle Decentralized Autonomous Organization and emphasizes a community-driven approach to decision-making.
Addressing stake concentration issues with mETH adoption
One of the main motivations for Mantle’s liquidity staking protocol is to solve the problem of concentration of Ethereum stakes within major providers such as Lido, Coinbase, and Binance. According to Jordi Alexander, Chief Alchemist at Mantle, the focus problem stems from a feedback loop of increasing name recognition and use cases.
To counter this, Mantle is focusing on driving the adoption of Mantle-staked Ether (mETH) in the Liquid Stake and DeFi (LSDfi) ecosystem. The protocol aims to contribute to the solution by providing users with more options and improving capital efficiency to maintain sustainable returns. Mantle DAO, empowered through the approval of governance proposal MIP-25 last August, has decided to stake ETH from the Treasury, adding to the existing $80 million of ETH it holds in Lido Finance.
As a significant player in the cryptocurrency space with total assets of $470 million in Ethereum and over $200 million in stablecoins, Mantle’s strategic approach to liquidity staking ensures that decentralized finance continues to advance on the Ethereum network. It represents a pivotal development in our development.