mETH Protocol operates as a permissionless, non-custodial ETH liquid staking protocol deployed on Ethereum L1 and governed by Mantle. The protocol's core component is Mantle Staked Ether (mETH), functioning as a value-accumulating receipt token. ^[1][3]

Overview

mETH Protocol is a permissionless and non-custodial ETH liquid staking protocol on Ethereum L1, governed by Mantle. It adopts a straightforward design alongside robust risk management strategies, leveraging Mantle Ecosystem resources to enhance yield potential. Mantle Staked Ether ($mETH) serves as the token representing staked ETH, facilitating ETH pooling among stakers. Stakers receive $mETH tokens reflecting their staked ETH and accumulated rewards, usable in other applications. Upon unstaking, stakers retrieve their staked ETH alongside rewards like issuance, priority fees, and maximal extractible value (MEV) distributed among stakers, LSP, and node operators. ^[1][2]

The protocol aims to offer a rewarding mETH experience by exploring yield opportunities in Mantle L2 DeFi applications, core technology partnerships, and centralized exchanges. It prioritizes sustaining the highest core yield through MEV exploration and Treasury yield sharing. mETH Protocol adheres to Ethereum Shanghai Upgrade principles, emphasizing the ETH: mETH process integrity on L1 without complexities from other PoS tokens or chains. Robust risk management ensures staked ETH security through non-custodial smart contracts and off-chain services, with validation tasks performed by Tier 1 Node Operators. ^[1][2] Mantle states that the ETH to mETH exchange rate is deterministically calculated, thus mitigating the impact of stake size on slippage. Furthermore, mETH is available for trade on various exchanges, with its pricing governed by market dynamics.^[3]

As a Mantle Core Product, LSP integrates with other Mantle Ecosystem components, leveraging engineering and growth capabilities. It adheres to Mantle Governance processes and accesses Mantle Treasury resources. ^[1][2][3]

Genesis

Mantle detailed that the genesis of the mETH Protocol began with a proposal in a Mantle forum on July 14, 2023. Following the acceptance of the Mantle Governance Proposal MIP-25, the staking of Mantle Treasury ETH was sanctioned, leading to the phased deployment of the mETH Protocol. This process culminated in the protocol’s full operational launch on Dec. 4, 2023, transitioning it into a Permissionless Mode.^[3]