Mantle Explained: The Ethereum Layer 2, mETH, FBTC, MI4 and the MNT Token
Not affiliated with this project. We received nothing for this page. Not financial advice.
Quick answer
Mantle is an Ethereum layer 2 network that grew from the BitDAO treasury, one of the largest DAO treasuries in crypto. Around the network it has built mETH (liquid staked ETH), FBTC (a Bitcoin wrapper), MI4 (an index-style fund product) and consumer apps. MNT is the governance and gas token. The big treasury is a strength, but most of it is held in MNT itself.
| Type | Ethereum layer 2 (modular, EigenDA for data availability) |
|---|---|
| Origin | BitDAO merged into Mantle in 2023 |
| Token | MNT (gas and governance) |
| Products | mETH, FBTC, MI4, consumer money app |
| Treasury | Billions of USD, mostly in MNT |
| Close partner | Bybit |
What is Mantle?
Mantle processes transactions off Ethereum's main chain and posts results back to it, cutting fees. It was an early user of EigenLayer's EigenDA for storing transaction data, a cheaper alternative to posting everything on Ethereum. Mantle has positioned itself as "blockchain for banking": a base for yield, Bitcoin and fund products aimed at both crypto users and institutions.
The product suite
- mETH: liquid staked ETH. You stake ETH and receive mETH, which earns staking rewards and can be used in DeFi.
- FBTC: a Bitcoin token for use across chains, backed one-to-one by BTC held with custodians.
- MI4: an institutional-grade, yield-bearing index product giving exposure to a basket of large crypto assets.
- Consumer app: a money app for spending and off-ramping.
The treasury, read carefully
Mantle reports a treasury worth billions of dollars. The breakdown matters: a large majority has been in MNT, the project's own token, with smaller amounts in ETH and mETH, BTC and stablecoins. A treasury mostly made of your own token is worth much less in a downturn, because selling it would push the price down.
What MNT does
MNT pays gas on Mantle and is used in governance votes on the treasury and protocol changes. Its value depends on network activity, product adoption and how the treasury is used.
Main risks to know
- Layer 2 risks: sequencer centralisation and bridge security.
- Treasury concentrated in its own token.
- Wrapped assets like FBTC depend on custodians.
- Competition from many Ethereum layer 2s.
Frequently asked questions
Is Mantle a layer 1 or layer 2?
Mantle Network is an Ethereum layer 2.
What is mETH?
Mantle's liquid staked ETH token: it represents staked ETH and earns staking rewards.
What is MNT used for?
Gas fees on Mantle and governance of the Mantle DAO and treasury.
How is Mantle related to Bybit?
Bybit has been a major backer and partner since the BitDAO days.
Sources
- Mantle · Official site
- L2BEAT: Mantle · Layer 2 risk analysis
Figures such as prices, supply and user numbers change quickly. We cite the source and date; check the live figure before you act.