Layer 2 Mantle Plans To Invest 200,000 ETH In LPs To Grow Profit Realized

Key Points:

• Mantle Governance considers proposals for Mantle Economics Committee to manage LSD and ETH Staking proposals.
• MEC would make conservative allocation decisions for the treasury assets and operate independently from asset custody.
• The committee would evaluate strategies, negotiate terms, and prioritize risk management, strengthening governance within the ecosystem.

Mantle Governance, an entity responsible for overseeing treasury management within the Mantle ecosystem, is engaging in significant discussions regarding the management of LSD and ETH Staking proposals.

In an effort to streamline decision-making processes and address time-sensitive matters, a proposal has been put forth to establish a specialized sub-governance body known as the Mantle Economics Committee (MEC). This committee would operate under the guidance of the governance, focusing on minor details and making conservative allocation decisions for Mantle Treasury assets.

The primary objective of the proposed MEC would be to assess and determine the allocation of treasury assets in a risk-averse manner. This committee would serve as a dedicated decision-making body, separate from asset custody responsibilities. By creating this specialized committee, proponents aim to enhance the efficiency and effectiveness of decision-making processes, facilitate commercial negotiations, and uphold checks and balances among existing entities.

The proposal encompasses several key aspects that will be voted upon by the community. Furthermore, it seeks to authorize the Mantle LSD and Lido ETH staking strategies, allowing a combined allowance of up to 200,000 ETH. The committee would be empowered to engage in commercial negotiations, determine the timing and scale of strategy entries and exits, and prioritize risk management and principal protection.

The MEC would hold several responsibilities, including periodic review of strategies, making recommendations for modifications to approved strategies and allowances, and making decisions on strategy entries and exits within the approved limits. The committee will evaluate strategies based on factors such as Mantle product synergy, technical risks, commercial risks, and economic risks, with a preference for battle-tested on-chain applications.

Additionally, the committee would negotiate commercial terms for strategies, emphasizing principal protection mechanisms, lower fees, and flexible commitment durations. Risk management and the protection of the treasury assets would remain paramount in all committee actions and decisions.

The approved strategies and allowances, as outlined in the proposal, would focus on ETH Staking and LSD. Specific positions include Lido stETH and/or wstETH, Mantle LSD mntETH, direct staking with Tier-1 node operators for Mantle LSD during the ramp-up phase, and the construction of (w)stETH-ETH and mntETH-ETH LP pairs on Ethereum L1 and Mantle L2 DEXes.

To ensure sound internal governance, the proposed Economics Committee would adopt a highly conservative approach to risk management. Its membership, internal governance rules, and authorized strategies and allowances could be modified at any time by the governance.

The proposal highlights the community’s ongoing commitment to robust governance and risk management within the ecosystem. By establishing the MEC, stakeholders aim to foster informed decision-making, ensure responsible allocation of treasury assets, and further strengthen the foundations of the network.

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