Mantle Restaked ETH (CMETH)

Staking and Restaking

Mantle Restaked ETH allows users to stake their ETH on the Mantle network and receive CMETH tokens as a liquid receipt. These tokens represent the staked ETH and can be restaked across various positions, enabling users to earn staking rewards from Ethereum while also helping secure the Mantle network.

Liquidity and Tradability

Unlike traditional ETH staking that locks assets, Mantle Restaked ETH remains transferable and tradable. This means users can keep their tokens liquid and use them in other decentralized finance (DeFi) applications or trade them on exchanges.

Network Security and Operations

The staked ETH represented by Mantle Restaked ETH is used to secure the Mantle network through its Ethereum Virtual Machine (EVM) compatibility layer. This dual use of staked assets adds value and yield opportunities for token holders.

Ecosystem Integration and Yield Opportunities

Mantle Restaked ETH is designed to be highly composable within the Mantle ecosystem’s decentralized applications (dApps). It supports integrations with various DeFi protocols, enabling users to access additional yield-bearing opportunities and participate in governance through related tokens like COOK.

Cross-Chain and Institutional Use

Recent developments include integration with Stargate Finance for zero-slippage cross-chain transfers and growing institutional adoption, expanding the utility of Mantle Restaked ETH beyond just retail users.

In summary, Mantle Restaked ETH is used for liquid staking and restaking of ETH, providing liquidity, network security participation, yield generation, and broad ecosystem utility.

Pros

• High Yield: Mantle Restaked ETH offers an attractive staking reward of about 7.2% APY, which is higher than the average ETH staking rates of 4-6%.
• User-Friendly: The platform is designed to be easy to use with a streamlined and intuitive experience.
• Non-Custodial & Permissionless: Users maintain control over their assets without needing permission from a central authority.
• Liquid Staking: Users receive mETH tokens as proof of stake, which can be used in DeFi activities, providing liquidity instead of locking up ETH.
• Security: The protocol has undergone multiple audits and uses Ethereum’s robust proof-of-stake security.
• Scalability: Uses Layer 2 technology (Optimistic Rollup) to reduce fees and speed up transactions.
• Decentralization: Aims to reduce centralization risks in ETH staking by offering an alternative to large providers like Lido.
• Restaking Capability: Supports restaking across various positions, increasing capital efficiency.
• Governance: Includes a governance token (COOK) allowing users to participate in protocol decisions.

Cons

• Unstaking Delay: There is a 7-day unstaking period, which means funds are not instantly accessible.
• Market Competition: Faces competition from established staking providers like Lido, Coinbase, and Binance.
• Price Volatility: The value of mETH tokens can fluctuate with the market.
• Complexity: While user-friendly, understanding liquid staking and restaking may be complex for beginners.
• Dependence on Ethereum Network: Performance and security depend on Ethereum’s proof-of-stake mechanism and upgrades.
• Contract Upgradeability: Managed by a multisig security council, which may introduce some centralized control aspects.

Founders and Governance

Mantle Restaked ETH does not have publicly named individual founders. The project is governed by the Mantle DAO, a decentralized autonomous organization where key decisions are made by token holders. The broader Mantle ecosystem, which includes Mantle Restaked ETH, is backed by BitDAO, a large DAO founded by Daniel Yan and Ben Zhou, co-founders of the Bybit cryptocurrency exchange.

Key Contributors

Jordi Alexander, Chief Alchemist at Selini Capital, is credited with the idea behind the mETH protocol, describing it as a lighter, more modern version of Lido’s staking solution.

Institutional and Community Support

Mantle is supported by major investors and partners including Founders Fund, Pantera Capital, Dragonfly Capital, and others. The DAO treasury manages billions in assets, supporting the development and expansion of the Mantle ecosystem.

Investors in Mantle Restaked ETH

Investors in Mantle Restaked ETH include a broad range of participants from individual retail investors to institutional investors. Notably, institutional involvement is encouraged through regulated crypto index funds like the MI4 Institutional Index Fund, which includes liquid staking tokens such as Mantle Restaked ETH. This fund was launched by Securitize and Mantle to offer exposure to diversified digital assets and yield strategies.

Institutional Investors

• MI4 Institutional Index Fund: A regulated fund targeting institutional investors, providing exposure to Mantle Restaked ETH among other assets.
• Crypto funds and professional investors seeking innovative yield strategies and participation in Ethereum staking and restaking.

Retail Investors

• Individual users who stake ETH through Mantle’s liquid staking and restaking protocols.
• Users who trade Mantle Restaked ETH on various centralized and decentralized exchanges.

Ecosystem Participants

• Validators and node operators who participate in Ethereum’s proof-of-stake network and Mantle’s network security.
• DeFi applications and money markets that accept Mantle Restaked ETH as collateral.

This diverse investor base supports Mantle Restaked ETH’s role in Ethereum staking, restaking, and DeFi liquidity.

Halal Status of Mantle Restaked ETH

• Yes, Mantle Restaked ETH is considered halal.
• This is because it involves staking Ethereum in a permissionless, non-custodial way that supports network security and earns rewards as a benefit of participation, not as interest or loans.
• The staking process aligns with ethical blockchain governance and does not involve prohibited financial practices like riba (interest).
• Mantle’s ecosystem and its staking protocols have been designed with transparency and compliance in mind, supporting its halal status.