Mantle team deploys liquid staking protocol on the Ethereum network

In exchange for blocked ETH, users will be provided with mETH derivative tokens that can also be used to generate revenue

04.12.2023 - 12:36

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2 min

What’s new? The developers of Mantle Network, the Layer 2 (L2) network, have launched a liquid staking protocol on the Ethereum blockchain. The initiative was proposed and approved by the Mantle community this summer. The protocol allows one to stake ETH and receive in return derivative tokens Mantle-staked ether (mETH), which can also be used to generate income in other projects.

Cointelegraph’s material

What else is known? The Mantle team began implementing the Liquid Staking Protocol (LSP) into the mainnet in a restricted alpha phase in early October. The project is now publicly available.

Liquid Staking, unlike traditional staking, allows the issuance of derivative tokens against the collateral of blockchain-backed cryptocurrency. While the original staked coins earn the owner interest for participating in the network’s operation, derivative tokens can also be used in revenue-generating protocols.

However, its popularity has led to the concentration of large volumes of coins in the hands of a few large players, such as the Lido protocol or the Binance and Coinbase exchanges. The Mantle team claims that it intends to combat this problem by offering sustainable yields on mETH.

As of December 4, the rate of the native token Mantle (MNT) is trading at $0.,5698, having added 5,1% overnight, a weekly gain of 12,8%, according to CoinGecko aggregator’s data.

On October 16, for the first time in five months, the queue for ETH staking ran out. The experts note that demand for the service and its profitability are shrinking. In late November, Glassnode analysts recorded an increase in the number of validators voluntarily disconnecting from the Ethereum network, which slowed the issuance of the asset. Combined with the increase in network activity, ETH has once again become deflationary as transactions burn some of the coins paid as fees.

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