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In a move to develop a more sustainable ecosystem for the Mantle network, Mantle’s proposal to allocate a substantial $1 million from its treasury funds to promote ecological development has received the green light. This announcement not only showcases Mantle’s commitment to environmental progress but also supports its ecosystem by providing liquidity to applications to better serve Mantle users.
MIP-26 Receives Community Support
The Mantle Network’s Economic Committee’s MIP-26 proposal, which focuses on utilizing treasury funds to boost network applications, has received official approval. Recognizing that many applications greatly benefit from having a foundational amount of liquidity to enhance the user experience within the Mantle ecosystem, the committee has taken a proactive approach.
While the preservation of assets within the Mantle Treasury offers a high level of security, the committee acknowledges that deploying a portion of these assets to support applications could potentially lead to elevated levels of success for the broader Mantle Ecosystem.
In line with the established MIP-25 framework, the authorized strategies and allowances are as follows:
- Liquidity Support for Applications: This category allows for a combined allowance of up to 60 million USDx, 30,000 ETH, and 120 million MNT.
- Ecofund Invested Applications: Applications aligned with the Ecofund initiative will have an individual allowance of up to 10 million USDx, 5,000 ETH, and 20 million MNT.
- Other Applications: For applications outside the Ecofund scope, they will be eligible for an individual allowance of up to 1 million USDx, 1,000 ETH, and 2 million MNT.
- Seed Liquidity for RWA-yield Backed Stablecoins: This allocation permits up to 60 million USDx to be utilized as seed liquidity for RWA-yield-backed stablecoins.
- Liquidity Support for Third-party Bridges: In support of third-party bridge initiatives, an allowance of up to 10 million USDx and 5,000 ETH is available.
The proposal highlights that the allocations mentioned above are maximum limits and might potentially overlap. It’s important to acknowledge that reaching these limits could be a gradual process over time.
Mantle Explores RWA-Backed Assets
Mantle aims to identify sustainable reward generators sourced from ETH-staking and RWA-backed components, allowing active participation for Mantle users and integration possibilities for Mantle applications. The management of ETH-staking falls under the purview of the Mantle LSD project, including a recent collaboration with Lido, as outlined in MIP-25.
In the market of RWA-backed assets, the Mantle core contributor team is actively engaged in discussions with various issuers. The preceding statements serve as a preliminary authorization for the execution of partnerships and seed liquidity provisions.
This seed liquidity will result in the creation of a receipt token, initially held within Mantle Treasury, with the subsequent intention of bolstering liquidity support for Mantle Network applications. Additionally, the receipt token remains eligible for redemption by Mantle Treasury.
The primary goal is to ensure the smooth operation of applications by offering liquidity support while preserving the principal amount. This entails giving priority to primitive applications like DEXs and money markets, as well as various pool types such as staking pools, single-sided pools, USDx-ETH type pools, and lending pools backed by collateral in the form of ETH and WBTC. These priorities are designed to maintain a robust and adaptable Mantle ecosystem.
Mantle Network has experienced remarkable expansion since its debut two months ago. Last month, the network saw its total value locked (TVL) surpass the impressive milestone of $40 million. This surge in TVL reflects a substantial increase in user deposits within the network.
Mantle’s mainnet alpha was officially introduced on July 17th and has rapidly ascended to become the seventh most valuable Layer 2 blockchain by TVL, according to data from DeFiLlama. It now ranks among prominent players in the space, including Arbitrum One, OP Mainnet, zkSync Era, Base, Starknet, and Immutable X.