Introduction
Mantle Network is a high-performance Ethereum layer 2 network built with a modular design that ensures low fees and high security. Mantle Network is the first modular layer 2 solution built for hyper-scaled dapps. Execution, data availability and transaction finality are in separate layers which enables increased transaction throughput which reduces the fees and reinforces the security and decentralized nature of Ethereum.
Key Features of Mantle
Built as a Rollup: It leverages Ethereum validators to reduce gas fees, lower latency, and boost throughput, with customizable settings for near real-time transaction confirmations.
Modular Architecture: It operates as a modular chain, separating execution, consensus, settlement, and storage into distinct layers. It features an EVM-compatible execution layer, Ethereum-based consensus and settlement layers, and an external data availability component Mantle DA, transitioning to EigenDA upon its mainnet launch.
Secured by Ethereum: With L2 state transitions verified by Ethereum validators, it undergoes the same consensus and settlement processes as L1 transactions.
Modular Data Availability: It uses independent data availability modules, like Mantle DA powered by EigenDA technology from EigenLayer, offering potential cost savings of over 90% compared to on-chain L1 solutions.
Before diving into the history of Mantle and how it came about, let's define some key concepts that will be discussed throughout this article. This will help those new to the web3 ecosystem better understand the information presented
L1 (Layer 1): The base layer of a blockchain network (like Bitcoin or Ethereum), responsible for core functions like security and consensus.
L2 (Layer 2): A secondary network built on top of an L1 blockchain, designed to improve scalability and reduce transaction costs.
Rollups: An L2 solution that processes transactions off-chain and submits a summarized record back to the L1 for security.
EigenLayer: A protocol that allows Ethereum stakers to "restake" their ETH to secure other protocols and applications built on top of Ethereum
On-chain: Activities or data that occur directly on the blockchain, ensuring transparency, security, and immutability.
Off-chain: Activities or data that happen outside the blockchain, often for efficiency or cost reasons, with the results later reflected on-chain.
ZK proofs: ZK proofs also known as Zero-knowledge are cryptographic methods that allow one party to prove the truth of a statement to another without revealing any additional information beyond the validity of the statement.
Overview and History of Mantle
Mantle was created by BitDAO, a DAO launched by the centralized exchange Bybit to support and empower builders. In February 2023, the Mantle core team proposed a $200 million fund on BitDAO's governance forum to grow the Mantle ecosystem. Half of the funding ($100 million) would come from the BitDAO treasury, with the remaining $100 million from external investors such as Pantera Capital, Spartan, QCP Capital, and Dragonfly. The fund is set to drive ecosystem growth.
In May 2023, a proposal to rebrand Mantle Network and BitDAO under the unified Mantle brand was approved, with 235 million $BIT(now $MNT) votes in favour and only 988 votes against. The goal was to adopt a "one brand, one token" approach, creating a unified ecosystem with a stronger product focus.
As part of the rebrand, the initial rollup component was officially named the Mantle Network, while BitDAO was rebranded as Mantle Governance. Mantle has its native utility token, $MNT, which is used for governance, staking, and paying transaction fees on the network.
The Mantle team includes key figures such as Ben Zhou, CEO and co-founder of Bybit, and Jordi Alexander, Chief Alchemist of Mantle.
Why Mantle Network?
Like all other optimistic L2s, Mantle Network seamlessly integrates with the Ethereum virtual machine allowing transactions to be offloaded from the mainnet, Mantle's uniqueness stems from its modular architecture that combines optimistic rollups with an enhanced data availability solution through EigenLayer which allows it to execute multiple transactions at once, establish efficient communication with the main network, and ensure that the network is not overrun by malicious blocks respectively.
Optimistic rollups group transactions into batches to be submitted to the Ethereum mainnet reducing load and gas fees. The data availability is made possible with EigenDA, the game-changing feature which is the first service built on EigenLayer. This allows Mantle to inherit Ethereum's security while significantly reducing gas fees, making transactions up to 70% cheaper.
Mantle Network's Architecture
Mantle v2 Tectonic processes transactions through a sequence of modules that interact with the EigenDA-supported Mantle Data Availability (DA). Users send signed transactions, which are packed into blocks by the sequencer. The op-batcher encodes and compresses the data, then stores it in the DA module before submitting validity information to the Ethereum L1 contract. Similarly, op-proposers send state root data to the L1 contract. Rollup transaction data is stored on Mantle DA, where verifiers can check its validity.
Mantle v2 Tectonic also introduces a transaction pool for temporary storage of transactions, improving transaction packing. The pool supports EIP-1559, letting users control transaction speed through priority fees. The pool is designed to be private, and transactions are processed based on their base and priority fees. In Mantle v2 Tectonic, $MNT serves as the native token for the system. This aims to provide users with a more flexible and efficient transaction experience, laying a solid foundation for the ecosystem's future development.
Transaction Lifecycle
The Initiation Users and dApps interact with the Mantle Network by connecting to the sequencer node's RPC endpoint. Users typically connect their wallets, while dApps integrate the Mantle SDK. They create requests with the recipient's address and transfer amount, ensuring they have enough balance to cover the required transaction fees. For wallets, calculating the required fee is straightforward, but dApps must perform more detailed fee calculations. After preparing the request, users or dApps sign it with their private keys and send it to Mantle, where the sequencer processes the transaction.
The Handling Once the transaction is received, the Ethereum Virtual Machine (EVM) running on op-geth nodes verifies its validity, checks that fees are paid, and transitions the state accordingly. The op-proposer then submits the new Merkle root to the Ethereum L1 contract. State submission happens after a batch of transactions, rather than after each individual transaction. Pending blocks, containing updated states, wait for further processing. These blocks are combined into batches that are encoded, compressed, and sent to Ethereum for final settlement, reducing transaction costs by sharing fixed fees across multiple transactions.
The Storage Mantle Network uses its own Data Availability (DA) system, Mantle DA, for efficient and cost-effective storage of transaction data. op-batcher submits the encoded transaction data to Mantle DA to ensure the integrity of the network. DA nodes synchronize and make data accessible at all times, earning $MNT rewards for their services. State data is stored securely on Ethereum, where it undergoes validation through Ethereum's consensus mechanism. Once verified, the state root is recorded on Ethereum, and the transition is finalized after the challenge period (usually 7 days).
Onchain System
According to the docs Mantle Network's on-chain module contains a series of smart contracts that run on the blockchain to ensure decentralized and reliable execution. These contracts are responsible for handling the logic of various dApps interacting with the blockchain, as well as the interaction of the off-chain system with the on-chain system, including asset transfers, asset swaps, and so on.
Offchain System
The off-chain System is another key module of the Mantle Network. It is responsible for executing specific tasks and logic in an environment outside of the blockchain, which is key to Layer 2's ability to scale L1 and provide more efficient and faster response and execution.
Tokens in Mantle Network
This introduces us to the world of Mantle's native token, $MNT (formerly known as $BIT), along with mUSD, Mantle's stablecoin, and mShard, a product of the partnership with Ethena.
MNT Token
The MNT token is an ERC-20 token serving as both a governance and utility token within the Mantle ecosystem. It grants holders voting rights for DAO decisions and is also used to pay for gas fees. Additionally, MNT can act as a secondary collateral asset for Ethereum validators powering EigenDA, enhancing the network's security and stability. With a maximum supply of just over 6.2 billion tokens and over 3.3 billion tokens in circulation. In the Mantle v2, MNT has transitioned from an ERC-20-based design to one that uses ETH for gas fees, aligning more closely with Ethereum’s native architecture for seamless integration into its ecosystem.
Mantle v2 is also introducing meta-transactions to facilitate the payment of transaction fees and provide a more flexible and smooth experience. This lets users interact without paying gas fees or waiting for transaction confirmations.
mUSD
The mUSD is an exclusive rebasing-wrapped version of Ondo Finance’s yield-bearing stablecoin, USDy, designed to maintain a consistent $1 peg. Its introduction on the Mantle Network is a collaborative effort between Mantle and Ondo Finance, enabling users to directly access real-world U.S. Treasury yields. Interest is distributed to users via the rebasing mUSD token.
mShard
Mantle partnered with Ethena to introduce USDe, a delta-neutral synthetic dollar that doesn’t rely on traditional banking infrastructure and leverages liquidity from both centralized and decentralized exchanges. This marks Ethena’s first cross-chain deployment and is expected to see wide adoption across Mantle’s Layer 2 applications.
Additionally, the Mantle Rewards Station launched with Ethena’s Shards, offers $MNT holders rewards and perks from popular Mantle ecosystem dApps. As part of the "Mantle Sharding with Ethena" event, mShard holders can redeem Ethena’s native token, $ENA, at a conversion rate of 582 mShards to 1 $ENA.
To participate you can visit here
mETH Protocol formerly Mantle LSP
This is a permissionless, non-custodial ETH liquid staking protocol on Ethereum L1, allowing you to stake your ETH and earn competitive yields. it uses Mantle Staked Ether (mETH) as the value-accumulating receipt token. The goal of mETH is to become the most widely adopted and capital-efficient ETH staking token. To achieve this, it is integrated across multiple Mantle Layer 2 DeFi apps, core tech partners, and centralized exchanges.
The concept for mETH, inspired by Lido's liquid ETH, was proposed by Jordi Alexander. He describes Mantle's liquid staking protocol as a "lighter, more modern version of Lido" and hopes it appeals to users concerned about Lido's centralization.
When asked about the differences, Jordi said:
"The design is more simpler, more modern, we need to look at where Lido came from. They came from a pre-proof-of-stake world, a lot of designs for things like Rocket Pool and Lido, they had to take into consideration this previous world and merge into a complicated difficult design."
Ecosystem
In July 2023, the Mantle Network mainnet launched, providing developers and users access to a full ecosystem of tools and dApps, including the mainnet bridge, explorer, and safe multisig. Also, Mantle introduced its inaugural modular dynamic NFT collection in collaboration with visual artist Chen Man. Titled Citizens of Mantle, the collection allowed around 38,000 users to acquire their own Mantle Companion NFT. To learn more you can visit here
With a substantial treasury to incentivize builders and a transparent system that lets users track treasury activity, Mantle aims to foster innovation and growth within its ecosystem. You can also view the various dapps that have been built using Mantle here
Mantle Missions
Mantle also allows users a earn various exclusive rewards by completing Mantle Ecosystem quests. To learn more you can visit here
Grants
With Mantle's aim is to foster a strong entrepreneur & developer community through its wide range of grant initiatives. Mantle is committed to supporting projects across all stages through Flagship Buildathon Programs & the Mantle Scouts Program.
For teams at the pre-product stage looking for technical and go-to-market support, Mantle encourages them to join the Mantle ecosystem by applying to the Flagship Buildathon Programs. These programs have various categories and geographic focus and happen on a rolling basis throughout the year. Top-performing teams may qualify for additional grants and ecosystem support. For individuals looking to explore this further, they can visit here
Bounties
Mantle also has a bug bounty program that incentivizes security researchers to identify and report vulnerabilities in the LSP protocol. The program is open to all security researchers, regardless of experience or affiliation. Rewards are distributed according to the impact of the vulnerability based on the Immunefi Vulnerability Severity Classification System V2.3.
There are different categories with rewards to follow
- Critical: Max is $500,000 and the min: is $100,000.
- High: Max is $100,000 and the min: is $20,000.
- Medium: where the flat is $5,000.
To interested individuals in this field, you can visit here
ZK Validity Rollup with Succinct’s SP1
Mantle Network is revolutionizing decentralized finance by transitioning to zero-knowledge (ZK) validity rollups through Succinct’s SP1. This upgrade significantly enhances scalability, security, and efficiency, enabling one-hour transaction finality, lower costs, and seamless Ethereum compatibility.
By integrating its modular architecture, EigenDA-powered data availability, and SP1’s ZK proofs, Mantle is building an institutional-grade liquidity chain for DeFi, gaming, and beyond. Developers can leverage advanced ZK technology while maintaining Ethereum’s interoperability and security standards.
The testnet launches in Q1 2025, setting the stage for next-gen decentralized applications and Mantle’s role as a leader in blockchain scalability. Stay tuned for updates as Mantle drives the future of on-chain finance, to learn more and see a roadmap to follow to know what is going on you can visit here
Upcoming Events
Mantle Network has various upcoming events in 2025 to allow individuals both new and existing to participate and learn more about what Mantle has to offer.
Web3 Connect: An Institutional-Focused Forum, taking place in Hong Kong on February 17 by 8:00 am local time.
Sozu Haus Denver 2025, taking place in Denver on February 22 by 1:00 pm local time.
Digital Asset Summit 2025, taking place in New York on March 18 by 3:00 pm local time.
To register for any of these events you can visit here
Conclusion
In this article, we've explored the Mantle network and the rich features and incentives it offers. This is just the tip of the iceberg, as Mantle continues to evolve and incentivize builders. To learn more, visit their website here, follow them on X (Twitter) here, join their Telegram here, and connect on Discord here to keep up to date and be part of the community.
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