Mantle, a Layer 2 network, has recently staked 40,000 ether (ETH) on the Lido staking protocol after passing a governance vote on treasury management. This move is aimed at generating a yield of 4.1% APR based on current rates, and the staked ether, known as stETH, is valued at approximately $66 million.
With a treasury value of over $3.2 billion, Mantle holds a significant amount of assets, primarily consisting of its native governance token (MNT), bitDAO (BIT), and stablecoins. The recent governance vote has given community members the authority to determine strategies related to Mantle’s treasury. As part of this mandate, a maximum of 200,000 ether has been approved for staking, with Lido being allocated 20% of this amount.
Mantle’s native token, MNT, is currently trading at $0.43, experiencing a 29% decline within the past month, mirroring the broader downturn in the crypto market.
In addition to the recent treasury management decision, Mantle has also unveiled its mainnet technology stack, which aims to scale Ethereum and compete with other layer two solutions like Arbitrum and Optimism. The Mantle network currently has a total value locked (TVL) of $37 million as it strives to establish its position among other layer two networks.
Overall, Mantle’s strategic staking on Lido represents a step towards optimizing its treasury and generating yield on its ETH holdings. With the community’s involvement in treasury decision-making and the introduction of its mainnet technology, Mantle aims to position itself as a formidable player in the competitive landscape of layer two networks.
Definitions:
– Layer 2 network: A secondary blockchain framework that operates on top of an existing blockchain, designed to enhance scalability and reduce transaction costs.
– Staking protocol: A system that allows participants to lock up their crypto assets for a specified period of time in order to support the security and operations of a blockchain network.
– Yield: The income or return generated from an investment.
– Treasury: The pool of assets owned by an organization or community.
– Governance vote: A decision-making process where participants (usually token holders) vote on proposals related to the management and direction of a project or protocol.
– Native token: The primary digital asset native to a particular blockchain or network.
– Total value locked (TVL): The total amount of assets locked in a decentralized finance (DeFi) protocol.
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