Overview
Chaos Labs supports the deployment of an Aave instance on the Mantle L2, contingent upon the availability of adequate Price Feed infrastructure. This report outlines Mantle’s technical aspects and associated risks, along with our recommendations for initial parameters and asset listings.
Technical Architecture
Mantle is an Ethereum L2 optimistic rollup solution. Its modular design separates execution, consensus, settlement, and data availability into distinct layers, incorporating a data availability solution powered by EigenDA to ensure efficient and secure operations.
Users submit transactions directly to Mantle’s L2 via RPC nodes, where the sequencer — composed of op-geth (execution client) and op-node (consensus client) — aggregates, validates, and packs transactions into blocks. These blocks are stored temporarily in a transaction pool, where the EIP-1559 fee mechanism allows prioritization of transactions based on priority fees. Once blocks are finalized, the op-batcher encodes and compresses the data, storing it in Mantle’s DA layer. Simultaneously, the op-proposer calculates the state root of these blocks and submits it to Ethereum L1 via the L2OutputOracle, ensuring synchronization between L2 and L1.
Mantle Architecture
Mantle DA features four main components: Dispersers, DA Operators, Retrievers, and Mantle DA Smart Contracts. Dispersers encode and distribute data chunks to DA Operators, funding data availability by paying operators to store and maintain the data for a specified period. DA Operators commit to storing data by signing digital proofs of availability, backed by staked assets as collateral. Retrievers monitor the system, enforce penalties for failures, and retrieve data for L2 applications. Mantle DA smart contracts validate proofs, enforce data availability guarantees, and manage slashing for non-compliance.
Ecosystem and Market
Mantle’s TVL has shown a steady growth trajectory since its inception. As of the time of writing, Mantle’s total TVL stands at $455 Million.
Mantle TVL Over Time
Pendle is one of the largest protocols deployed on Mantle, with an active $50M cmETH market. Other large protocols include Merchant Moe and Agni Finance, two DEXes detailed below. Additionally, Treehouse maintains a TVL of $93M on Mantle, with a cmETH vault with a cap of 30,000 cmETH, and Init currently has $128M deposited ($52M is cmETH) and $35M borrowed, the majority of which is stablecoins.
Mantle’s DAUs have shown a general growth trend since the project’s launch. While there have been fluctuations, such as in June and September 2024, the past three months have demonstrated relative stability. During this period, Mantle’s DAUs have consistently remained above 30,000.
Mantle Daily Active Users Over Time
DEXes
Currently, the top DEXes on Mantle are Merchant Moe and Agni Finance. Below, we outline the DEXes with significant liquidity on Mantle.
We note that Methlab, a lending protocol on Mantle, contributes some mETH liquidity. However, since Methlab primarily operates as a lending protocol and offers only two trading pairs, we will not discuss it in detail.
- Merchant Moe:
- TVL: $121.43M
- 7-day Cumulative Volume: $51.67M
- Agni Finance:
- TVL: $107.57M
- 7-day Cumulative Volume: $20.9M
- Cleopatra Exchange:
- TVL: $2.04M
- 7-day Cumulative Volume: $14.91M
- FusionX Finance:
- TVL: $423.30K
- 7-day Cumulative Volume: $684.24K
Tokens
We recommend a strict list of launch assets, all of which have been extensively covered by Aave Risk Providers. The selection aims to provide basic functionality for the new instance, with any additions and successive listings being proposed and approved through standard governance procedures.
We anticipate that the community may wish to list MNT, mETH, and cmETH, along with Ethena assets.
Chaos Labs proposes the following assets for the initial listing on the Mantle instance:
| Asset | Supply on Mantle | Market-cap on Mantle | 24-Hour DEX Volume on Mantle | Liquidity | Mantlescan |
|---|---|---|---|---|---|
| WETH | 71,196 | $230.42M | $23.74M | $18.26M | URL |
| WBTC | 117 | $11.03M | N/A | $1.74M | URL |
| USDC.e | 25,398,550 | $25.37M | $1.22M | $1.70M | URL |
| USDT | 243,652,484 | $243.52M | $9.08M | $12.37M | URL |
Oracles
The proper oracle infrastructure is currently unavailable on the Mantle chain. Therefore, we recommend waiting for these to become available before deploying Aave on Mantle.
Listing Parameters
Given the current lack of oracles, Chaos Labs will refrain from providing initial listing parameters as our recommendation is likely to be obsolete by the time of such a deployment.
Disclaimer
Chaos Labs has not been compensated by any third party for publishing this recommendation.
Copyright
Copyright and related rights waived via CC0