Research Summary
The report provides an in-depth analysis of Mantle LSP, a dual-channel yield combiner supported by RWA and ETH PoS. It discusses the development history, mETH distribution, and the role of stablecoins in the Mantle ecosystem. The report also highlights the potential of Mantle LSP as a yield aggregator.
Key Takeaways
Mantle LSP’s Development and Performance
- Successful Launch: Mantle LSP, a core product deployed on Ethereum L1, was launched on December 4th. Ten days post-launch, its TVL reached 120k ETH, valued at approximately $274 million, with over 3,700 validators and an APY of 3.92%.
- Community-Driven Development: The journey from community discussion to proposal to official launch took nearly half a year, adhering to the governance process established by the Mantle community. The protocol was designed to be simple and usable, emphasizing the integrity of mETH operating on L1.
mETH Distribution and Adoption
- Major Holders: The largest holder of mETH is Mantle Treasury, holding about 81.4% of the total. The second-largest holder is Mantle Network. The distribution of mETH allows for the identification of the composition of staking entities and user preferences in Mantle LSP.
- Secondary Market: mETH can be bought and sold on the secondary markets of Uniswap and Bybit. Its price on these markets is determined by price discovery, with large transactions potentially facing higher slippage.
Role of Stablecoins in the Mantle Ecosystem
- Introduction of USDY: Mantle and Ondo Finance launched the RWA-backed USD stablecoin USDY and its rebasing wrapped version mUSD on the Mantle Network. USDY is a tokenized note secured by short-term U.S. Treasury bonds and bank demand deposits, offering returns from underlying assets.
- Adoption of USDY: USDY has seen widespread adoption within the Mantle Network ecosystem. It has a TVL of $2.2 million in Agni Finance, the largest DEX on Mantle, and the USDC/USDY 0.01% LP Pool has the highest liquidity among all stablecoin pairs on FusionX Finance.
Mantle LSP as a Yield Aggregator
- Dual-Channel Yield Aggregator: Based on the stablecoins USDY/mUSD and Mantle LSP mETH, Mantle Network has effectively formed a dual-channel yield aggregator supported by RWA and ETH PoS. This could unlock even greater potential for returns.
Actionable Insights
- Monitor the Performance of Mantle LSP: Given its successful launch and impressive performance, it would be beneficial to keep a close eye on the development and performance of Mantle LSP.
- Understand the Role of mETH: Understanding the distribution and adoption of mETH could provide insights into the composition of staking entities and user preferences in Mantle LSP.
- Explore the Potential of USDY: The RWA-backed USDY has seen widespread adoption within the Mantle Network ecosystem. Exploring its potential as a means of income appreciation could be beneficial.
- Consider the Impact of Mantle LSP as a Yield Aggregator: The formation of a dual-channel yield aggregator supported by RWA and ETH PoS could have significant implications for returns. It would be worthwhile to consider the potential impact of this development.
