Manifold Finance adds a new twist to the liquid staking token race
Manifold Finance has announced the launch of a new mev-optimized liquid staking token (LST) that they hope will allow them to compete in the crowded market for ether staking derivatives.
According to a blog post reviewed by Blockworks, Manifold announced on Wednesday that users can now convert their existing 28,000 crETH2 into mevETH, an updated LST “focused on providing maximum value for validators,” the blog post states.
Manifold previously acquired 25,000 liquid staked ether ( ETH ) with the ticker crETH2 from CREAM Finance in a deal in April. CREAM staking business was an early driver of liquid staking on Ethereum.
The liquid staking token landscape is highly competitive and currently dominated by a handful of large players, such as Lido, Rocket Pool, and Frax. There is currently approximately 27.35 million ETH staked cumulatively worth $44 billion.
Manifold aims to enter the market deeper by focusing on a new MEV auction system that will allow “multiple winners per slot, as opposed to the current paradigm of one slot, one winner in the Flashbots MEV Boost system,” per a blog post. Flashbots' MEV Boost currently accounts for over 90% of the ETH validator market utilizing block generators.
The auction mechanism will be implemented in collaboration with 20squares, which previously worked with Flashbots, according to Manifold's Sam Bacha. Other ESGs could also reportedly benefit from the new auction system.
According to a governance forum post, the protocol will also have an associated token, MEV, but it is unclear what functionality it will offer, governance or otherwise. Manifold currently has a governance and reward token, FOLD.
The blog post also hints at future DeFi integration, mentioning integration with Yearn and upcoming lending protocols.