Ethereum Layer 2 network Mantle announces the launch of the permissionless, non-custodial liquidity staking protocol Mantle LSP on the Ethereum mainnet, allowing users to stake Ether (ETH) and receive Mantle-staked Ether (mETH) as tokens representing their staked assets. Mantle LSP is governed by Mantle’s decentralized autonomous organization (DAO).
Liquidity staking provides users with the advantage of unlocking capital from 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 states that they aim to expand the range of available solutions to address the centralization of staking.
Jordi Alexander, Chief Alchemist at Mantle, stated that following the approval of a proposal on “Brands, Tokens, and Tokenomics Optimization” initiated by the BitDAO community in May this year, BitDAO merged with Mantle, which it supported. With the merger of BitDAO’s governance structure and treasury with the network, Mantle received support from one of the largest treasuries in the cryptocurrency space. According to data from DeepDAO, its assets include $470 million worth of ETH and over $200 million in stablecoins.
After the approval of governance proposal MIP-25 by Mantle DAO in August, they have been authorized to use their protocol to stake the Ether in their treasury, supplementing the $80 million worth of ETH currently staked by the DAO through Lido Finance.