Mantle expands the Ethereum-based DeFi ecosystem by introducing the mETH liquid staking protocol. Mantle, the DAO-led web3 ecosystem, today introduced the Mantle Liquid Staking Protocol (LSP) as a significant addition to the Mantle Ecosystem. This opened up a new way for users to interact with Ethereum’s validator network.
Mantle launches staking on Ethereum: mETH is coming!
Mantle LSP is a permissionless and non-custodial Ethereum (ETH) liquid staking protocol running on Ethereum L1 and managed by Mantle. The project is the second basic product of the Mantle Ecosystem, after L2. The project launched Mantle Staked Ether (mETH), a value-accumulating voucher token. Mantle suggests that this development is a very important step for the protocol. In this context, Mantle made the following announcement:
Meet the Mantle core product: Mantle LSP, a permissionless, non-custodial ETH liquid staking protocol! Hold mETH, the value-accreting voucher token that opens the door to expanded return opportunities.
🚨 Introducing a Mantle core product: Mantle LSP, a permissionless, non-custodial ETH liquid staking protocol!
Get your hands on $mETH, the value-accumulating receipt token that opens the gateway to expanded yield opportunities.
🟢 Check out the APY at: https://t.co/5uJADLgHiF pic.twitter.com/Lw7upiRS5V
— Mantle (@0xMantle) December 4, 2023
This staking attack on Ethereum had a positive impact on Mantle’s token, MNT. While the altcoin was around $0.55 during the day, it progressed towards $0.59. At press time, MNT was trading at $0.5856, up 7.7% on a daily basis.
MNT daily price chart. Source: CoinMarketCapChallenges key stakeholders
A vital aspect of Mantle’s Ethereum strategy is to capture the growing concentration of ETH in the hands of dominant providers such as Lido, Coinbase, and Binance. Jordi Alexander, chief strategist at Mantle, emphasizes that the problem stems from a feedback loop resulting from name recognition and user preference. Mantle counters this by promoting mETH in the Liquid Staking and DeFi (LSDfi) ecosystem.
The goal is to provide a variety of options for users. Also, improving capital efficiency to sustain returns. Mantle’s DAO began staking Ethereum from its treasury following the MIP-25 governance proposal. This move adds to the $80 million ETH deposited with Lido Finance.
Mantle’s financial footprint
The project has a significant financial footprint in the crypto market. Considering this, Mantle’s entry into the liquid staking arena is noteworthy. Mantle’s approach could significantly impact the decentralized finance landscape on the Ethereum network, with $470 million in ETH and $200 million in stablecoin assets. Their strategy represents a shift towards a more inclusive and decentralized staking environment. As a result, although it opened the day in a downward trend, Mantle (MNT) gained positive momentum afterwards.
