Treasury Strategy: Mantle Allocates $66M Ether to Lido Staking
Mantle, a layer 2 network, has taken significant steps in its treasury management strategy, including staking 40,000 ether (ETH) on the Lido staking protocol. This strategic move comes after a successful governance vote earlier this month, empowering the community to shape Mantle's treasury-related decisions.
The staked ether, represented as stETH, holds a value of approximately $66 million and is expected to yield a 4.1% annual percentage rate (APR) based on current rates. With a treasury worth over $3.2 billion, Mantle's holdings include its native governance token (MNT), bitDAO (BIT), and stablecoins.
The recent governance decision sanctioned up to 200,000 ether for staking, out of which 20% has been allocated to the Lido protocol. This move aims to leverage the earning potential of staking in the DeFi ecosystem.
Despite the value-added strategies, Mantle's native token has experienced a decline, trading at $0.43. This decline aligns with the broader cryptocurrency market's recent downturn, which has impacted numerous tokens and assets.
In addition to its treasury actions, Mantle has also launched its mainnet technology stack to enhance Ethereum scalability, positioning itself in competition with other layer 2 solutions like Arbitrum and Optimism. Although the Mantle network currently maintains a total value locked (TVL) of $37 million, it faces the challenge of establishing a significant presence among its layer 2 counterparts.