Mantle Staked Ether (METH)

Use Case

Mantle Staked Ether is used to pool Ether deposits from users who want to stake their ETH on the Ethereum network. When users stake ETH, they receive Mantle Staked Ether tokens (mETH) that represent their staked ETH plus any rewards earned. This allows users to earn staking rewards while keeping their assets liquid and usable.

Technology and Protocol

It operates as a permissionless, non-custodial liquid staking protocol on Ethereum Layer 1. The protocol uses Optimistic Rollup technology to improve scalability. Users maintain control of their assets throughout the staking process, and mETH tokens can be freely traded or used in other decentralized finance (DeFi) applications.

Benefits and Applications

• Enables participation in Ethereum’s proof-of-stake network without locking up ETH.
• Provides liquidity by allowing mETH tokens to be used in DeFi protocols.
• Helps increase decentralization by broadening staking options beyond major providers.
• Acts as a value-accumulating receipt token that grows as staking rewards accumulate.
• Supports capital efficiency and yield generation within the Ethereum ecosystem.

Advantages

• Mantle Staked Ether uses Optimistic Rollup technology, a Layer 2 scaling solution that processes transactions off-chain, reducing congestion and lowering transaction fees.
• It is a permissionless and non-custodial liquid staking protocol, meaning users keep control of their assets without needing approval from a central authority.
• The token (METH) represents staked ETH and accumulates value from staking rewards, allowing users to earn passive income.
• METH tokens maintain liquidity, enabling holders to use them in other DeFi protocols while still benefiting from staking.
• The protocol is built on Ethereum Layer 1 and benefits from Ethereum’s security and the Shanghai Upgrade improvements.
• Mantle offers higher staking yields compared to some competitors by subsidizing rewards from its treasury.
• The platform is designed to be user-friendly with a streamlined experience for staking and managing assets.
• Mantle’s governance is decentralized through a DAO, promoting community involvement and decentralization.
• The protocol has undergone multiple security audits to ensure robustness and safety.

Disadvantages

• The high staking yields are subsidized and capped, meaning they may decrease once the subsidy ends or the cap is reached.
• There is a limited supply cap on METH tokens, which may restrict growth or staking capacity.
• As with all cryptocurrencies, METH prices can be volatile and subject to market fluctuations.
• The protocol’s boosted yields may not be sustainable long-term without continued subsidies.
• Some users may prefer more established staking providers with longer track records.

Overall, Mantle Staked Ether offers efficient, liquid staking with attractive yields and user control, balanced by limits on supply and potential changes in reward rates.

Founders

The founders of Mantle Staked Ether remain anonymous. The project is governed by the Mantle DAO, which uses community-driven decisions for protocol management and enhancements.

Origin and Key People

The idea for Mantle Staked Ether (mETH) was championed by Jordi Alexander, chief information officer at Selini Capital, who described it as a "lighter weight, more modern Lido." However, no specific founder names are publicly disclosed for the Mantle Staked Ether project itself.

Governance

Mantle Staked Ether is managed by the Mantle decentralized autonomous organization (DAO), which oversees the protocol and its development through community proposals and voting.

Investors in Mantle Staked Ether

The investors in Mantle Staked Ether include notable venture capital and crypto investment firms such as Coinbase Ventures, Temasek’s Vertex Ventures, and Galaxy Ventures. These investors participated in funding rounds supporting the development and growth of Mantle Staked Ether.

Halal Status of Mantle Staked Ether

• Nature of Mantle Staked Ether: Mantle Staked Ether is a token representing staked Ethereum in a permissionless, non-custodial liquid staking protocol on Ethereum's Layer 1. It allows users to earn rewards by participating in Ethereum’s proof-of-stake (PoS) network.

• Staking and Shariah Compliance: Staking in Ethereum involves locking tokens to help secure the network and earn rewards. This process is generally considered halal because it does not involve lending or interest (riba), but rather a form of earning through participation in network security, similar to earning rental income.

• Expert Opinions: Islamic finance discussions suggest that Ethereum staking, when done correctly, is halal as it is a legitimate passive income without interest or unethical involvement. The rewards come from a joint effort to maintain the blockchain, not from loans or interest.

• Specific to Mantle Staked Ether: Since Mantle Staked Ether is tied to Ethereum staking and operates on a non-custodial, permissionless protocol without interest-based lending, it aligns with the principles that make Ethereum staking halal.

Answer: Yes, Mantle Staked Ether is halal because it represents participation in Ethereum’s proof-of-stake network, earning rewards without involving interest or loans.