Ethereum Layer 2 network, Mantle, has announced the launch of the permissionless and non-custodial liquidity staking protocol, Mantle LSP, on the Ethereum mainnet. This platform allows users to stake Ethereum (ETH) and receive Mantle-staked Ether (mETH) as tokens representing their staked assets. Mantle LSP is governed by the decentralized autonomous organization (DAO) of Mantle.
Liquidity staking offers users the advantage of unlocking capital from their staked assets. However, the widespread use of liquidity staking on Ethereum has led to ETH staking being concentrated on major platforms such as Lido, Coinbase, and Binance. The Mantle team expressed their desire to expand the range of available solutions to address the issue of staking centralization.
Jordi Alexander, Chief Alchemist of Mantle, stated, “According to a previous report by Zombit, in May of this year, BitDAO and Mantle, supported by BitDAO’s community, merged after the proposal on ‘Brands, Tokens, and Token Economics Optimization’ was approved. With the merger of BitDAO’s governance structure and treasury with the network, Mantle gained support from one of the largest treasuries in the cryptocurrency space. According to DeepDAO data, their assets include $470 million worth of ETH and over $200 million in stablecoins.”
Following the approval of governance proposal MIP-25 in August, Mantle DAO has been authorized to stake its treasury’s Ethereum using its own protocol, supplementing the $80 million worth of ETH staked through Lido Finance by the DAO.
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