Mantle has launched a revolutionary liquid staking protocol on the Ethereum mainnet. This Layer 2 network provides users with a novel method of staking without requiring them to be in custody. The protocol is governed by a decentralized autonomous organization (DAO) and has achieved a successful deployment.
The protocol, known as the Liquid Staking Protocol (LSP), offers users an alternative to major providers such as Lido, Coinbase and Binance. This is done through the adoption of Mantle-staked Ether (mETH). mETH is a token which reflects the stake of the user on the network.
The initial launch of the LSP was exclusive to an alpha phase in October. This was followed by a permissionless phase to increase participation and access. The DAO is now in charge of the protocol and is responsible for making governance decisions.
The main aim of Mantle’s liquid staking protocol is to address the concentration of ether stakes in major providers. This concentration results from an increase in recognition and usage. To counter this, Mantle has seen the adoption of mETH on the Liquid Staking DeFi ecosystem (LSDfi).
The Protocol is designed to give users more options and improve capital efficiency. This is in order to maintain sustainable yields. This approach has been noticed by major players in the cryptocurrency space. For example, Mantle’s treasury has staked ether with a cryptocurrency exchange and Lido Finance has over $80 million of ETH staked.
The successful launch of Mantle’s liquid staking protocol marks a pivotal development in the ongoing evolution of decentralized finance on the Ethereum network. It provides users with an innovative way to stake ETH and offers an alternative to major providers, resulting in greater capital efficiency.
