Mantle: Shaping the Future of On-Chain Finance

Abstract

Mantle is a high-performance Ethereum layer-2 network built with a modular architecture.

Mantle has three core products: Mantle Network, mETH Protocol and Ignition FBTC, with 3 newly announced upcoming products, Mantle Enhanced Index Fund, Mantle Banking and MantleX.

$MNT is the native token of the Mantle ecosystem, serving as the governance and staking token that empowers innovation and growth in the decentralized economy.

What Is Mantle

Mantle has three core products: Mantle Network, mETH Protocol and Ignition FBTC, with 3 newly announced upcoming products，Mantle Enhanced Index Fund, Mantle Banking and MantleX. Mantle is committed to shaping the future of on-chain finance, striving to become the largest on-chain financial hub. It aims to redefine the landscape of on-chain economics while fostering the growth of banking for the next generation.

Technical Principles of Mantle Network

Mantle Network is the first Layer 2 public blockchain to adopt the EigenDA data availability solution. By storing transaction data in EigenLayer and submitting only the necessary state roots to Ethereum’s mainnet, Mantle Network minimizes OP Rollup's high calldata fees and optimizes data processing efficiency. This enables Mantle Network to maintain low latency and high throughput during peak transaction periods,offering a stable technological foundation for on-chain financial applications.

Furthermore, by uniting zero-knowledge proofs with the proven versatility of the OP Stack, Mantle Network enhances on-chain privacy protection, reduces transaction confirmation times, and elevates Layer 2 network performance to new heights. Through the strategic integration of Succinct SP1, Mantle Network improves bridging capabilities, enabling transactions to be completed within an hour and supporting institutional-grade asset settlement. This upgrade further promotes capital efficiency in the on-chain economy. With its modular architecture, EigenDA-based scalability, and SP1-powered zk-proofs, the Mantle network is paving the way for institutional-grade settlement and value transfer within the crypto ecosystem.

Strengths of Other Mantle's Products

Based on the powerful technical advantages of the Mantle Network, it has developed three distinctive ecosystem products: mETH Protocol, Ignition FBTC, and Enhanced Index Fund.

mETH Protocol

The mETH Protocol is an Ethereum liquid staking protocol with a TVL exceeding $1.6 billion, ranking among the market leaders. The protocol's core advantages include: (1) Once cmETH holders acquire mETH tokens through staking, they can easily restake them to earn additional cmETH tokens, thereby reaping double rewards. (2) Both mETH and cmETH can be used in a variety of DeFi and centralized applications, such as collateral for money markets or perpetual trading. (3) cmETH utilizes the LayerZero OFT Standard, providing added convenience to users by enabling fast bridging between chains within minutes and without slippage. (4) Users opt in to their desired risk-reward profile by choosing to hold either mETH or cmETH. Additionally, COOK is the governance token for mETH Protocol, used for voting on the ecosystem's direction and other strategic matters.

Ignition FBTC

Ignition FBTC is a decentralized protocol that enables the seamless transfer and management of Bitcoin (BTC) across various blockchain networks. It uses reputable and trusted multisignature custody solutions, and employs Threshold Signature Scheme (TSS) Network to conduct minting and bridging. By seamlessly integrating BTC with the Web3 economy, Ignition FBTC unlocks new financial opportunities. FBTC is pegged 1:1 to Bitcoin, enabling seamless transfers across Ethereum, the Mantle Network, and BNB Chain. The launch of FBTC aims to transform Bitcoin from a traditional store of value into a dynamic asset capable of participating in DeFi. The product has gained recognition from institutional investors and has established partnerships with multiple leading blockchain projects.

Enhanced Index Fund

Enhanced Index Fund is an institutional-level yield-bearing product that Mantle is about to launch, offering a diversified investment into a basket of top-tier crypto assets. As an enhanced index fund launched by Mantle, it is designed to provide exposure to a systematically rebalanced basket of crypto assets, including BTC, ETH, SOL, and USD. The fund will incorporate yield-generating assets such as mETH, bbSOL and sUSDe to enhance returns for subscribers. The fund will utilize institutional-grade custody, administration, and reporting.

From a data perspective, Mantle's ecosystem products have demonstrated outstanding performance. According to official data, on December 9, 2024, Mantle Network's Total Value Locked (TVL) reached a new all-time high of $23.6 billion. The mETH protocol emerged as the fourth-largest ETH liquid staking token protocol, with its peak TVL reaching $18.7 billion. Ignition FBTC has also experienced rapid growth in 2024, surpassing the $1 billion TVL mark.

Mantle Tokenomics

$MNT is the native token of the Mantle ecosystem, serving as the governance and staking token that empowers innovation and growth in the decentralized economy. As a governance token, holders of $MNT can participate in important decisions of Mantle, influencing the future direction of the project through voting.

The Mantle Treasury, as the core funding pool of the ecosystem, holds over $4 billion in assets. It provides strong support for the liquidity of the Mantle network and funds the development of core products. Through this pool, Mantle distributes rewards to developers and users participating in the ecosystem, driving the growth of DeFi activities. Within the Mantle treasury, MNT tokens constitute 73.612% of the holdings, with the remaining assets comprising BTC, ETH, COOK, and stablecoins.