DAO-Led Blockchain Developer Mantle Launches Liquid Staking Protocol on Ethereum Mainnet
The blockchain developer Mantle, led by a decentralized autonomous organization (DAO), has introduced a liquid staking protocol (LSP) on the Ethereum mainnet. This protocol enables users to deposit ETH and participate in network staking through validator nodes. The proposal for the protocol was made in the Mantle governance forum in July 2023, and it allows users to stake ether and receive mETH (Mantle-staked ether) as a token representing their stake. With the governance being handled by the Mantle DAO, this protocol marks Mantle’s expansion following the deployment of its Layer 2 network.
Diversifying Liquid Staking Solutions
Liquid staking offers the advantage of freeing up capital from staked assets. However, the use of this method on Ethereum has resulted in a concentration of ether stakes with major providers like Lido, Coinbase, and Binance. In response to this issue, Mantle aims to diversify available solutions. Jordi Alexander, Chief Alchemist at Mantle, explains that the concentration is a result of network effects and increasing name recognition. By focusing on mETH’s adoption and capital efficiency, Mantle LSP seeks to create more options for users.
Mantle DAO’s Staking Strategy
Following the approval of governance proposal MIP-25 in August, Mantle DAO has decided to stake ether from its treasury using its own protocol. This decision complements the DAO’s existing $80 million in ETH staked with Lido Finance, which is currently the largest liquid staking protocol in terms of assets under management. After merging with BitDAO earlier this year, Mantle holds one of the most significant community treasuries in the cryptocurrency space, including $470 million in ether and over $200 million in stablecoins.
Hot Take: Expanding Liquid Staking Options for Ethereum Users
Mantle’s launch of the liquid staking protocol on the Ethereum mainnet aims to address the concentration of ether stakes with major providers. By offering an alternative solution, Mantle LSP provides users with more options and helps diversify the ecosystem. With the governance handled by the Mantle DAO, this protocol represents an expansion of Mantle’s offerings following its successful deployment of a Layer 2 network. As the crypto industry continues to evolve, it is crucial to have a variety of liquid staking solutions available to ensure a decentralized and inclusive staking environment for all Ethereum users.
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