Mantle Liquid Staking Protocol is an open and non-custodial ETH liquid staking solution implemented on Ethereum's Layer 1, managed by Mantle. The receipt token, Mantle Staked Ether (mETH) acts as a value accruing token. This means that its value grows against ETH passively everyday without need for the user to take action. Having soft launched in Q4 2023, the product has since seen impressive traction in regards to Total Value Locked.
What is driving this surge in TVL?
Most recently, individuals have been incentivized to stake with Mantle due to the favorable discrepancy of yields amongst its competitors. The graph below highlights this vast difference in Annual Percentage Rate, with mantle being over 4% higher than its closest competitor:
How is this yield attainable?
Jordi Alexander, one of the advisors at Mantle, created this incentive over the holiday season. He decided to share the staking yield from the large treasury of ETH. Another attributing factor towards this yield is the fact that mETH users will be benefactors of Miner Extractable Value (MEV) rewards. At the time of writing there is currently a little less than 50,000 ETH capacity remaining within the pool.
Airdrop Potential
Users are also incentivised to stake on Mantle due to its early connection with Eigenlayer, more specifically the fact that they were the first Layer 2 to work with Eigenlayer. Jordi hinted that Eigenlayer is likely to add mETH as a restaking option in the future. Furthermore, there is scope to receive airdrops from Blast and Manta.
Conclusion
Mantle's Liquid Staking Protocol has experienced a significant surge in Total Value Locked, establishing itself as a formidable player in the liquid staking space. This growth is largely attributed to the attractive yield discrepancies compared to its competitors, with Mantle offering over 4% higher Annual Percentage Rate. The strategic decisions including sharing staking yields from a large ETH treasury and incorporating Miner Extractable Value rewards for mETH users within this pool, have been core contributing factors of its recent growth. Additionally, Mantle's early partnership with Eigenlayer and potential collaborations with Blast and Manta for airdrops further enhance its appeal to users. These factors combined have not only driven Mantle's TVL growth but also positioned it as an innovative and lucrative option for ETH stakers seeking higher returns and potential additional benefits.
Disclaimer: This research report is exactly that — a research report. It is not intended to serve as financial advice, nor should you blindly assume that any of the information is accurate without confirming through your own research. Bitcoin, cryptocurrencies, and other digital assets are incredibly risky and nothing in this report should be considered an endorsement to buy or sell any asset. Never invest more than you are willing to lose and understand the risk that you are taking. Do your own research. All information in this report is for educational purposes only and should not be the basis for any investment decisions that you make.