Blockchain developer led by DAO, Mantle, has launched a liquid staking protocol on the Ethereum mainnet. The protocol will allow users to deposit ETH and participate in network staking processes through validator contracts. Initiated by a proposal at the Mantle governance forum in July 2023, the protocol enables users to stake Ethereum and receive Mantle-staked Ether (mETH) as a token representing their assets.
Mantle Team Takes Notable Steps
The protocol, managed by the decentralized autonomous organization Mantle, represents the expansion of its services following the establishment of Mantle’s Layer-2 network. Mantle started offering its liquid staking protocol (LSP) mainnet contracts in a limited alpha phase at the beginning of October. The project has since moved to a significant stage by expanding access and participation.
Liquid staking is known for offering users the advantage of freeing up funds from staked assets. However, its widespread adoption in the Ethereum ecosystem has led to asset centralization with major exchanges such as Lido, Coinbase, Binance, and others.
How Will The Process Continue?
Mantle team is known to want to expand the current range of solutions to address the issue of asset centralization. Mantle Chief Engineer Jordi Alexander made the following comment on the matter:
“The centralization of ETH assets is a result of the network effect through the feedback loop of increasing name recognition and usage situations. Mantle LSP aims to be part of the solution by creating more options for users by focusing on the adoption of mETH both within and beyond the Mantle ecosystem in LSDfi, and on capital efficiency in maintaining the highest sustainable yield.”
After the approval of the governance proposal MIP-25 in August, Mantle DAO chose to stake Ethereum through its protocol using the treasury. This step complements the $80 million in ETH assets staked with Lido Finance, the largest liquid staking protocol under DAO governance by managed assets.
Merging with BitDAO in May 2023, Mantle owns one of the most significant community treasuries in the cryptocurrency market. According to DeepDAO, this treasury includes Ethereum assets valued at $470 million and over $200 million in stablecoin assets.
