Introduction

As the Ethereum ecosystem matures, staking mechanisms have become a key way for users to earn returns. The liquid staking protocol mETH Protocol, launched on the Mantle platform in August 2023, has achieved a total value locked (TVL) of $1.558 billion as of January 3, 2025.

Source: defillama

In late October 2024, the mETH Protocol introduced the cmETH product, driving innovation in the restaking market. cmETH offers multiple revenue opportunities and demonstrates significant scalability potential. Compared to other LRT products, cmETH excels in innovation, usability, and deep integration with both CeFi and DeFi. Additionally, the mETH Protocol launched the $COOK Feast campaign, where users can participate to share $cmETH rewards.

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What is the mETH Protocol?

The mETH Protocol was launched in August 2023 as a decentralized, permissionless liquid staking protocol. It is positioned as Mantle’s second core product following its Layer 2 network, aiming to create synergies across the Mantle ecosystem.

Users can stake ETH to obtain mETH. According to DeFiLlama data, over 460,000 ETH has been staked on mETH, with the TVL reaching $1.8 billion.

Source: DeFiLlama

According to official data from the mETH Protocol, mETH has now been integrated into 231 different platforms or protocols across various categories, including major platforms like Bybit, MetaMask, OKX DEX, and DeFiLlama. This not only lays the foundation for broader acceptance and utility of $mETH in the DeFi space but also supports the ongoing expansion of the mETH Protocol ecosystem.

Source: mantle.xyz

How mETH Operates:

When users stake ETH into the contract, they receive mETH. The contract supports staking, unstaking, and compounding reinvestment operations.

Oracle contracts provide external data to ensure the LSP obtains accurate information, while the Oracle Quorum Manager ensures data consistency.

Node operators stake ETH to Ethereum and perform validation services.

mETH offers diverse reward sources, including issuance rewards, staking rewards, MEV, and priority fees. All rewards are aggregated by the Returns Aggregator through consensus layer and execution layer receivers and then distributed to mETH holders after deducting service fees.

Technical Advantages:

mETH adopts post-Ethereum Shanghai upgrade designs, supporting LST-to-ETH conversions for improved stability and efficiency.

As an L2-native ETH with yield properties, mETH automatically accumulates returns, enhancing capital efficiency and simplifying integration into the broader ecosystem.

Security Measures:

mETH employs permissionless and non-custodial features to ensure user asset security.

The protocol is managed through smart contracts, with core security modules (Pauser, Guardian, Mantle Security Guardian) protecting the protocol in case of abnormalities.

Source: Official Whitepaper

What is the cmETH Protocol?

In June 2024, with the approval of the MIP-30 governance proposal, cmETH became a new liquid restaking token (LRT), marking the upgrade of mETH from LSD to LSD + LRT. mETH holders can restake their tokens within the mETH Protocol to receive cmETH.

1. Advantages

Access to More Earning Opportunities

Unlike most LRTs in the market that adopt a “one-to-one” model, cmETH introduces an innovative “one-to-many” model. It connects multiple restaking protocols (e.g., EigenLayer, Symbiotic, Karak, Zircuit), significantly simplifying user operations. This model eliminates the need to frequently switch protocols or perform complicated steps, enabling users to enjoy rewards from multiple protocols easily. Compared to competitors like Renzo and ether.fi, cmETH offers more protocol options, catering to diverse investor needs and delivering higher earning potential.

By holding cmETH, users can simultaneously receive multiple rewards, including ETH staking returns; rewards from restaking protocols; AVS earnings; COOK token rewards; partner incentives; additional benefits from dApps and protocol integrations.

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High Scalability

cmETH demonstrates excellent cross-domain scalability in CeFi and DeFi, greatly enhancing user convenience.

As part of the Mantle ecosystem, cmETH has gained robust support from Bybit. On Bybit, users can directly stake mETH to earn on-chain points, and mETH can also be used as collateral, establishing a strong foundation for CeFi integration. This allows users to switch between CeFi and DeFi seamlessly.

In DeFi, cmETH supports cross-chain bridging via LayerZero’s OFT standard, facilitating access to various DeFi protocols. Looking ahead, cmETH plans to expand to emerging Layer1 ecosystems like Berachain and Fuel, further increasing its activity in the DeFi market.

Additionally, cmETH has undergone audits by Blocksec and Quantstamp to ensure its security, strengthening user trust.

Comparison Between mETH and cmETH

Advantages and Disadvantages of mETH:

mETH offers stable staking returns, making it ideal for users seeking low-risk and straightforward operations. Its core strength lies in providing users with basic staking rewards without the potential slashing risks associated with restaking, and it is easy to use. However, mETH only offers fundamental staking rewards, lacking the additional benefits from restaking protocols, which limits its earning potential.

Advantages and Disadvantages of cmETH:

cmETH provides higher earning potential by covering more earning opportunities, such as restaking points and AVS rewards. Its “one-to-many” model connects multiple restaking protocols, adapting to a broader range of CeFi and DeFi scenarios and boasting strong scalability. However, users must bear potential slashing risks in restaking scenarios. This higher-risk, higher-reward approach is suitable for users willing to take on greater risks to pursue higher returns.

Source: x

Source: x

COOK Token

Earn COOK using the mETH Protocol and stake it to obtain cmETH. Multiple revenue streams ensure the long-term value of COOK.

The COOK token is the governance token of the mETH Protocol and a core component of the Mantle ecosystem.

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Tokenomics

According to the official documentation, the total supply of COOK is 5 billion tokens, with an initial circulating supply of 960 million tokens (approximately 19.2% of the total supply).

The distribution plan is as follows: 10% is allocated to the core contributor team, with a one-year lockup period followed by a three-year linear release; 30% is allocated to the Mantle Treasury; the remaining 60% is reserved for the mETH Protocol community; COOK token holders can participate in the governance of the mETH Protocol ecosystem and influence the future direction of the protocol through voting and other means.

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Source: docs.mantle.xyz

How to Obtain COOK Tokens?

(1) Restake mETH into cmETH to earn COOK.

Source: meth.mantle.xyz

(2) Participate in the COOK Feast campaign launched by the mETH Protocol. By locking COOK tokens, users can share a pool of 200 $cmETH. During the campaign period (November 21, 2024, to February 16, 2025), users can withdraw funds anytime or opt for fixed lock-up periods to earn higher rewards.

Source: x

Source: meth.mantle.xyz

Source: meth.mantle.xyz

Conclusion

The cmETH product of the mETH Protocol addresses the issue of fragmented liquidity in liquid staking token (LRT) applications through its innovative “one-to-many” model. It provides multiple earning opportunities, simplifies user operations, and enhances earning potential. Its deep integration within CeFi and DeFi ecosystems allows users to switch effortlessly between platforms and achieve higher returns. With strong cross-platform capabilities, cmETH is a key entry point in the restaking market.

However, cmETH is not without risks. Since it involves restaking, users may face market volatility and slashing risks in restaking protocols, increasing potential losses. Although it offers substantial rewards, the cross-platform operations and technical complexities might lead to challenges in user experience. Additionally, cmETH’s reliance on multiple protocols introduces potential risks such as smart contract vulnerabilities and compliance issues. Investors should exercise caution.