Mantle, a blockchain developer managed by DAO, has launched a new liquid staking protocol on the Ethereum mainnet. Users can participate in the staking process by depositing ETH and can transact through validator contracts. The protocol, initiated with a proposal in the Mantle governance forum in July 2023, allows users to stake Ethereum and receive Mantle-staked Ether (mETH) tokens representing their investments.
This protocol, managed by Mantle, represents the expansion of their services following the establishment of their Layer-2 network. The protocol started offering mainnet contracts in a limited alpha phase in October and has since reached a significant stage by expanding access and participation.
Liquid staking offers the advantage of releasing funds from staked assets. However, the widespread centralization of assets by major exchanges such as Lido, Coinbase, and Binance in the Ethereum ecosystem has raised concerns.
The Mantle team aims to address the issue of asset centralization by expanding their existing range of solutions. Jordi Alexander, Head Engineer at Mantle, stated that Mantle LSP focuses on adopting mETH both within and outside the Mantle ecosystem, while creating more options by focusing on sustainable returns and capital efficiency.
After approving the governance proposal MIP-25 in August, Mantle DAO decided to stake Ethereum through the protocol and use its treasury in addition to the $80 million worth of ETH assets staked with Lido Finance, the largest liquid staking protocol under DAO governance. Following the merger with BitDAO in May 2023, Mantle has one of the most significant community treasuries in the cryptocurrency market, including $470 million worth of Ethereum assets and over $200 million worth of stablecoin assets.