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 stake. Mantle LSP is governed by Mantle’s decentralized autonomous organization (DAO).
Liquidity staking provides users with the advantage of releasing capital from staked assets. However, 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.
Mantle’s Chief Alchemist Jordi Alexander 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. With the merger of BitDAO’s governance structure and treasury with the network, Mantle gained the support of one of the largest treasuries in the cryptocurrency space. According to DeepDAO data, its assets include $470 million worth of ETH and over $200 million in stablecoins.
After Mantle DAO approved governance proposal MIP-25 in August, they were authorized to stake Ether from their treasury using their own protocol, supplementing the $80 million worth of ETH staked by the DAO through Lido Finance.
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