mUSD: Sustainable Yield On USD-Stables

Mantle has partnered with Ondo Finance to subscribe to yield-bearing $USDY, now fully backed by U.S. Treasuries and U.S. bank demand deposits, and bring this asset to the Mantle Ecosystem. A rebasing wrapped version of $USDY called $mUSD, designed to maintain a peg at $1, has been created exclusively for Mantle Network.

Ondo is a market leader in institutional-grade blockchain products, with $USDY/$mUSD currently yielding an estimated 5.1% APY.

Users can now swap their existing stablecoins for the performing yield-bearing $USDY and $mUSD.

mETH: Sustainable Yield From ETH Staking

Mantle has deployed the contracts for Mantle LSP, a permissionless and non-custodial Ether (ETH) liquid staking protocol deployed on Ethereum L1 and governed by Mantle.

Mantle LSP combines simple and modern design with robust risk management, and leverages extensive existing Mantle Ecosystem resources to deliver a highly rewarding experience. $mETH serves as the value-accumulating receipt token of Mantle LSP. $mETH is breaking onto the scene with a 4.0% APY native yield for its users, sustainably generated through Ethereum's proof-of-stake (PoS) validation network. Public access to $mETH will be available from Dec. 4, and we are working with Mantle Network applications to integrate it as a main constituent of their products.

Mantle Treasury: $1 Billion in Yield-Seeking TVL, Preparing for New Deployment

Building upon MIP-25 and MIP-26, with MIP-28 the Mantle community has voted for ~$1 billion of Mantle Treasury assets (USD, ETH, BTC, and MNT) to be committed to subscribe to underlying yield-bearing instruments, and deploy liquidity to bootstrap Mantle Network applications.

Apart from healthy subscriptions in the above mUSD and mETH, the Mantle Economics Committee (MEC) is actively evaluating potential partnerships for Treasury deployment on two separate fronts:

A) Yield Assets: The MEC is seeking other top quality sustainable-yield products into which to diversify its assets. By conducting a careful analysis of available sustainable yield investments, the Committee seeks to select a cohort of assets, and ultimately have this yield benefit the native asset, $MNT. As an early example, the Committee has recently approved a $10 million deployment into Ethena-USD.

B) Ecosystem dApp Deployments: After Treasury assets such as USD stablecoins and ETH have been boosted with base yield, the MEC is tasked with deploying an uncapped amount of these assets into native applications. While all applications are welcome to apply, for larger size deployments the MEC will be prioritizing the fully vetted teams within the Mantle Showcase App program in order to maximize quality and safety.

Mantle’s Differentiating Factors

Assessment and Selection: In the process of selecting foundational yield instruments (e.g., $mETH, $mUSD/$USDY), Mantle prioritizes partners with sustainable business models, and a long-term perspective on collaborating with Mantle Ecosystem.

Treasury Skin-in-the-Game: Mantle Treasury is committed to subscribing hundreds of millions of dollars to yielding instruments, demonstrating confidence in the products. This also provides flexibility to enhance core yield for Mantle Ecosystem users in the future, and flexibility to bootstrap liquidity across Mantle Network L2 applications.

Broad Adoption Across L2 Applications: Mantle actively encourages comprehensive adoption of yield-bearing instruments across Mantle Network L2 applications. This approach aims to offer users diverse yield opportunities beyond simple holding, encompassing activities such as lending, trading, and liquidity provision — with deep liquidity and composability.

User Opt-In: While certain pathways may be incentivized and encouraged, users retain autonomy and active opt-in to their yield adventure. This includes subscribing to the same underlying instruments (e.g., $mUSD, $mETH) and further deployment on various L2 applications.