During an insightful AMA, Shubbam from Manta Network highlighted the platform's innovations in blockchain and privacy, particularly its $2 billion success in DeFi Bonding Liquidity through Manta Pacific's layer 2 solution. Manta Network is leading the DeFi space by providing zero-knowledge proofs and strategically moving to layer two for scalability and lower gas costs.

The AMA also discussed upcoming campaigns to increase user engagement, incentives for stakers, and the multifaceted role of the $MANTA token. Manta Network's growth strategy involves luring partners and users with its "Blast Off" campaign, emphasizing security and effective staking. Explore the highlights to learn how Manta Network is changing the landscape of decentralized finance in the future:

X Spaces: Deep Dive into L2 Chains with Manta Network

Speakers:

• Shubbam (X Profile) - Head of Ecosystem at Manta Network (X Profile)

Index:

1. Manta Network Overview
2. Layer Differences and Polkadot’s Role
3. Data availability and Gas Fees
4. Manta Token Utility
5. Staking Mechanisms on Manta Network
6. Incentives and Rewards for Stakers
7. Re-staking Process
8. Security and Risk Mitigation for Staking
9. Manta Network Layered Front-end
10. Manta Network Partnerships and Developments

1. Manta Network Overview

• Shubbam introduced Manta as the first modular blockchain with zero knowledge proof applications, specifically an Ethereum Virtual Machine compatible Zero Knowledge application chain:

“Manta is the first modular blockchain with zero knowledge proof application. So we are an EVM-compatible ZK application chain. “

• Manta Network includes Manta Atlantic, a Parachain on Polkadot, and Manta Pacific, a layer two chain on Ethereum.

“So Manta Network has two chains right now. So one is Manta Atlantic, which is a ParaChain layer one on Polkadot and Manta layer two like Pacific is a layer two on Ethereum EVM compatible chain.”

2. Layer Differences and Polkadot’s Role

• Manta Atlantic has grown into one of the largest projects on Polkadot, originally focusing on privacy. They faced challenges with cross-chain bridges that affected privacy capabilities.

“So Atlantic was our first project. where we initially launched the chain as a Parachain on Polkadot right now it is one of the biggest projects on Polkadot after the successful launch of Manta Pacific (...) initially when we started it was a privacy chain and at that time no one was talking about the privacy no one was talking about the zk so it was working well for us (...) And that's how the privacy was not working for any other chain that was not focused on that particular. So that was the major issue with the privacy chain that time”

• Manta shifted goals towards using zero-knowledge proofs to create a decentralized privacy network and increased focus on layer two to gain traction for ZK apps. Mentioning that layer one handles staking, transactions, and network fees, while layer two houses ZK applications to attract users.

“So we thought maybe our goal was to fix this issue and to get some more traction on the ZK side. Or maybe to focus more on the decentralized or the other privacy network side. So we started with the layer 2 first to gain some traction. As you know like after the token on so our Atlantic chain is also getting live or more and live more and apart from that we are majorly using layer one for the staking for the call letter and the network usage fees as well”

• Manta Pacific, the layer two, launched in September 2023, amassing $2B in Total Value Locked (TVL).

“So we initially launched Mainnet back in September 2023 for the Pacific, like Manta Pacific, which is L2. And till now we have been around $2 billion on chain TVL. So that's how like big we are on the Pacific side or the L2 side.”

3. Data Avalability and Gas Fees

• Manta uses Celestia as a data availability layer. Celestia helps lower gas fees and increases utilization rates, avoiding Ethereum's fee spikes by using Celestia for data storage.

“To be a native house for the zk application so right now we have built our own zk like universal circuits so that we can provide zk as a service plus as you guys know like the gas fees on the zk rollups right now are quite expensive so before launching fully on the zk side we wanted to pursue like a data availability and celeste was the best example for that (...) But if you check on the Manta network side, so with the help of Celestia, all the data has been pushed over there and we can easily reduce the gas fees whenever we want, even if it's high on that particular end."

4. $MANTA Utility Token

• $MANTA tokens are widely adopted in various DeFi applications on Manta Pacific, an EVM-compatible layer two. The Revenue from the network leads to $MANTA token burns to support its value.

“So the major use case like users can use it all over the like ecosystem. It is adapted by all the DEXs, all the lending protocols, and all the yield aggregators, everyone is accepting the Manta token. (...) Apart from that, all the revenue generation is being used and the Manta token has been burned from that particular end so that the value doesn't go down and deplete in the future."

• On Manta Atlantic, $MANTA tokens pay for network fees, and peer-to-peer transfers, and will be used for governance by the Manta Foundation, in addition to enhancing network security.

“Apart from that, on the Atlantic side, on the L1 side, Manta token can be used as the network usage fees. It can also be used for peer-to-peer transfers. It can it will be used for the governance model. So for the Manta Foundation, which has been like already in discussion and will be established soon.”

5. Staking Mechanisms on Manta Network

• Manta Network offers liquid staking of $MANTA tokens. Users stake tokens on layer two which is managed on layer one in the background, getting liquid staking tokens on layer two.

“Whenever you go to the liquid staking you just need to do like some transactions you need to approve it on the background side it will go to the Atlantic side it will be staked and all the liquid stake tokens will come back to the Pacific like the layer 2 (...) So you can directly stake, there will be no bridging, and you will directly get the stake or the LST tokens to the L1. So that's how the basic principle works over here.”

• Manta bridge is used for secure transactions between the layers, with Layer Zero partnership adding security and utility.

“Manta bridge which was specifically for the Atlantic to Pacific so if you go to the Manta website you'll get to see like bridge to Pacific or bridge to Atlantic so that's the native one which is quite secure from our end and even definitely it's from the Manta side (...) Recently we have also partnered with layer zero So, layer Zero can help us out for the EVM or maybe the other chains connecting out or getting out on the Ethereum mainnet side. So, in the future, if we talk about LRTs, so maybe layer Zero will be helping us out on the bridging side.”

6. Incentives and Rewards for Stakers

• Provides competitive Annual Percentage Yields through partners like Accumulated Finance and BiFrost, ranging between 36% and 49%.

“So for example right now there are two projects that are providing Liquid Staking specifically for $MANTA tokens which is Accumulated Finance and the second one is Bifrost. So I think like the average API on that particular end was around 36 to 49 percent.”

• The "Blast Off" campaign provides stakers with bonus tokens for staking BETH on Manta, partnered project rewards included.

“We recently announced the campaign called the Blast Off. So if you hold some tokens like ETH on Blast, you can use native Blast projects like FreeTech and Rawr. So these two projects help you to get BETH on Manta. And if you stake like restake all these tokens BETH on Manta, so you get additional tokens from Manta. Plus you get additional tokens from the ecosystem projects as well.”

7. Re-Staking Process

• Users bridge staked assets from Ethereum to Manta to re-stake and receive liquid restaking tokens on Manta.

“The restaking part is mostly done on the L1 side like the mainnet side, not on the L2. So if you hold some tokens like if you bridge it out from any other chain to Manta you just need to hold your ETH on Manta all the background processes will be done by the projects that are currently part of our restaking. “

• Connext collaborates with Renzo to support bridging operations and deploy XERC on Manta. “So if you have heard about Connext, so they have a recent like partnership with Renzo for a token called XERC. So these XERC is a cross-chain token which can be used on Manta, which can be deployed on Manta as well.”

8. Security and Risk Mitigation for Staking

• Manta partners with audited protocols and trusted bridges. Additionally, Manta aims to implement a multisig approach to increase asset security.

“The bridges we are currently looking at have been audited plus all the projects which have been in this space for quite long we are getting their suggestions (...) Apart from that, multisig is already ready. We will be having multisig aligned so that there is no scam or there is no project who just come and hold all the tokens of the users and they just ran away from that. So yeah, these are some of the parts which we are currently focused on. “

9. Manta Network Layered Front-End

• Shubbam talked about front-end aspects related to LST tokens, LRTs, and user options. Tokens on Manta Pacific can be bridged to Manta Atlantic with one click, and new tokens are minted on the Pacific side for DEX use.

“So I think like the front end for all these things like it can be LST or LRT. So the front end for all this is because right now Manta has a different perspective. (...) o, we want a front-end where, for example, if you hold tokens on Manta Pacific, with just one click, it will be bridged to the... L1 like Manta Atlantic, your tokens will be staved, new minted tokens will be on the Pacific side and then you will have all the options to go ahead and deposit or provide liquidity on any other DEXes on Manta Network.”

• A front-end system is in development to let ETH holders on Manta select strategies involving liquid staking protocols or LRTs like Kelp.

“So for example, if you like hold native ETH on Manta. So you have two options. As you can see on the website, just like aggregation, you'll see two strategies. One, either to go with the liquid stake, like staking protocols, or maybe you should go with the LRTs, just like Kelp or any other one, and see how and what rewards you are going to get.”

10. Manta Network Partnerships and Developments

• Shubbam mentioned partnerships with Accumulated Finance, Bifrost, an active 'blastoff' campaign, and expected partnerships like Kelp for LRTs.

“So the blastoff campaign is also live, you can just check out Manta Twitter and there are like liquid staking partners like Accumulated Finance and also like Bifrost is also live so you can check all of them (...) on the LRT side we are looking for some more partners but I've already mentioned names like Kelp and stuff so they will be coming to Manta and yep that's the major next step which we are looking forward for”