What is Manta Pacific? A comprehensive analysis of the surging TVL of Manta

What is Manta Pacific? A comprehensive analysis of the surging TVL of Manta

What is Manta Pacific? A comprehensive analysis of the surging TVL of Manta

Table of Contents
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What is Manta Pacific?
Introduction to Manta Pacific
Four Development Phases of Manta Pacific
(1) Manta Pacific Alpha (Ethereum L2)
(2) Manta Pacific Alpha II (+Celestia DA)
(3) Manta Pacific Beta (+Transition to zkEVM)
(4) Manta Pacific Production-Grade Mainnet I (+Universal Circuit 2.0)
Manta Launches New Paradigm Campaign
Expected Rewards of New Paradigm
Steps of the New Paradigm Campaign
Manta Ecosystem: StakeStone and Mountain Protocol
(1) StakeStone
(2) Mountain Protocol
Overview of Manta Ecosystem Data and Projects
Conclusion by Manta
Manta Pacific is an Ethereum Layer2 designed specifically for ZK applications. It is currently based on OP Stack and fully compatible with the EVM environment and Solidity programming language. In the future, Manta Pacific will implement zkEVM based on the Polygon CDK. It will also utilize Manta’s universal circuits to provide ZK-as-a-Service and low gas fees through Celestia’s modular data availability.
The popular Blast futures prices on Aevo have recently surged from the lowest $3.5 to $15.5 within a week, before falling back to $7. This indicates that the L2 model focusing on native yield has been recognized by the market.
Can Manta, which also recently launched native yield through the New Paradigm campaign, surpass Blast? Let’s first take a look at the advantages of Manta and the additional earning opportunities for early participants compared to Blast.
Manta Network is a modular blockchain for zero-knowledge (ZK) applications. Manta Network was created by an experienced founding team from prestigious institutions such as Harvard University and MIT.
Manta Network has received investments from top Web3 investment funds, including Binance Labs and Polychain Capital.
Manta Pacific is an Ethereum Layer2 designed specifically for ZK applications. It is currently based on OP Stack and fully compatible with the EVM environment and Solidity programming language. In the future, Manta Pacific will implement zkEVM based on the Polygon CDK. It will also utilize Manta’s universal circuits to provide ZK-as-a-Service and low gas fees through Celestia’s modular data availability.
Manta Pacific provides the perfect environment to support ZK applications. Solidity developers do not need cryptographic knowledge or learn a new language to implement ZK functionality. They can easily enable ZK features in existing applications by calling the SDK or API.
(Note: Manta’s universal circuits are a library of zero-knowledge proof (ZK) circuits designed for general scenarios. They provide ZK-as-a-Service for Solidity developers, enabling ZK functionality in existing applications with just a few lines of code. This includes compliant DeFi payments, Web3 social identity verification, and full-chain game shuffling. Developers can easily deploy EVM-native ZK applications through Manta Pacific’s universal circuits.)
Manta Pacific launched its Alpha mainnet version on September 12, 2023. It is currently the third-largest OP Stack L2, following Optimism and Base. Once it fully transitions to zkEVM, Manta Pacific may become the largest Polygon zkEVM-based L2 network.
In the current version, Manta Pacific is based on Ethereum’s Optimistic Rollup, using Ethereum’s data availability (DA).
It utilizes Manta Network’s universal circuits to allow developers to quickly build and deploy ZK-related applications using Solidity and the universal circuits SDK.
Therefore, all existing Ethereum smart contracts can seamlessly adapt to Manta Pacific and open up new application scenarios based on ZK features, such as verifiable DID/KYC, fully on-chain games based on ZK, and collaboration between DeFi and decentralized identities.
In this phase, Manta Pacific will achieve data expansion through the integration of Celestia’s modular data availability (DA), significantly reducing the gas fees for user interactions with dApps within the Manta Pacific ecosystem.
The cost of Celestia is sub-linear with Ethereum’s gas price, making it much cheaper than the existing Ethereum cost.
In this phase, Manta Pacific plans to fully transition to zkEVM and utilize Polygon’s ZK prover.
The final stage of the network architecture is to use Manta’s universal circuits for built-in ZK features to support a wide range of ZK applications, while combining Validium services, Celestia DA, zkEVM, and Polygon CDK to achieve scalability.
In the last stage, Manta Pacific will officially launch its mainnet. For the Manta Pacific mainnet, Manta Pacific will further upgrade the universal circuits to achieve lower gas costs and unlock new application scenarios with novel ZK technology.

Looking at Manta Pacific’s roadmap, it will be the first zkEVM L2 to transition from Optimistic Rollup to Validium. This transition will be implemented using the Polygon CDK and significantly reduce gas fees through Celestia DA. It is a forward-looking L2 solution.
Recently, Manta launched the New Paradigm liquidity incentive campaign within its ecosystem. Similar to Blast launched by Blur, users can stake their funds to receive future token airdrops as rewards.
However, compared to Blast, New Paradigm has the advantage of a rich ecosystem and a shorter break-even period. Users can receive token airdrops as early as January 2024, while Blast’s airdrop may not be available until May. In comparison, New Paradigm has a much higher fund utilization rate than Blast.

New Paradigm has five sources of income, including fixed income, NFT incentives, and the stacking of DeFi composability within the L2 ecosystem.
When ETH and USDC are bridged to Manta ecosystem, similar to Blast, users can earn around 5% interest even if their assets are idle.
By participating in the campaign and staking assets, users can receive future token airdrops of MANTA.
By interacting with projects within the Manta ecosystem, users can also gain potential airdrop opportunities from the projects themselves.
By staking ETH and USDC, users can use the earned Stone and wUSDM to participate in projects within the Manta ecosystem, such as lending projects, and benefit from the projects themselves.
Users can also earn income through restaking of stETH (optional, subject to Eigenlayer Restaking Cap availability in the future).

(Note: ETH will be converted to Stone and USDC will be converted to wUSDM after deposit. If there is no GAS for subsequent interactions, third-party bridges such as MiniBridge can be used to cross-chain to the Manta network, saving GAS.
To participate in the campaign, users need to deposit funds through the campaign page to receive blind box fragments. However, GAS is required for subsequent interactions within the Manta ecosystem, which can be cross-chained through third-party bridges.)
Cross-chain ETH or USDC to Manta Pacific for deposit to earn returns and box fragments. The deposit period is open until January 2024.
Users will receive STONE and wUSDM on Manta Pacific within 24 hours after deposit. The earliest date to claim MANTA token rewards through the NFT will be January 2024.
69 days after the distribution of MANTA token rewards, users can redeem ETH and USDC using STONE and wUSDM.
The current deposit campaign of New Paradigm is in its final sprint stage. Readers who wish to participate can use the invite code from BitEye:
https://newparadigm.manta.network?inviteCode=YBY7X
In New Paradigm, the earnings from staking ETH come from the StakeStone protocol, while the earnings from staking USDC come from the Mountain Protocol. Now, let’s introduce these two key protocols within the Manta ecosystem:
StakeStone is a full-chain LST (Liquid Stake Token) protocol that aims to build a decentralized all-in-one staking protocol and a cross-chain market for LST liquidity. It is backed by Hashkey Capital and has received an audit from Secure3Audit.
Users can deposit ETH to receive STONE. For example, if User A deposits 100 ETH in exchange for a certain amount of STONE, and after one year, the value of 1 STONE becomes 1.04 ETH, User A can withdraw 104 ETH from StakeStone using 100 STONE.
When users deposit ETH into StakeStone, they immediately receive STONE. At the same time, the received ETH enters the treasury contract and waits for deployment. After deployment, the ETH in the treasury contract is sent to Lido to exchange for stETH, which is then stored in StakeStone’s vault.
In the future, stETH may be deposited into Eigenlayer for restaking to generate more earnings for STONE holders.
Currently, the total amount of ETH deposited in StakeStone is steadily increasing, with a total of 225,498 ETH deposited, equivalent to $515M.

https://dune.com/HolyMoon/stakestone
Mountain Protocol is an institutional-level compliant regulatory stablecoin protocol. It is supported by short-term US government bonds, which are one of the safest assets in the world.
The main reserves behind USDC and USDT are also short-term US government bonds. According to the risk rating report from Bluechip, USDM has the same risk rating as DAI. Therefore, Mountain Protocol combines security and compliance.
In New Paradigm, users deposit USDC and automatically receive wUSDM (Wrapped USDM) on Manta Pacific, similar to Lido’s wstETH.
During the New Paradigm campaign, users can consider using wUSDM in other protocols to earn yield. wUSDM can be used to interact with various smart contracts, decentralized applications, and wallets on L2, just like any other ERC20 token.
Currently, the circulating supply of USDM has reached $136M, significantly increasing after the collaboration with Manta.

https://defillama.com/protocol/mountain-protocol
According to L2 Beat data, the TVL of Manta Pacific has reached $559M, surpassing Linea, Starknet, and other popular L2 chains. It currently ranks sixth.

Based on on-chain data, the number of transactions (TX) within the Manta ecosystem has reached nearly 7 million, with a total of 446,454 wallet addresses. There has been significant growth in on-chain activity in the past three months.

https://analytix.web3go.xyz/layout/dashboardDetail/3a6f41b3-bb1c-43b1-a1e8-bd1158033e31
Currently, there are over 200 ecosystem projects on Manta Pacific, with most projects yet to launch their tokens. It can be foreseen that the New Paradigm campaign has brought in a large number of new users and deposited a significant amount of funds into the ecosystem. These funds will continue to circulate within the ecosystem and interact with projects, gradually cultivating loyal users on the chain.
Here are introductions to some key ecosystem projects on Manta:
QuickSwap: QuickSwap is the largest DEX in the Manta ecosystem and one of the largest and most well-known DEXs in the Polygon ecosystem.
iZUMi Finance: iZUMi is a multi-chain DeFi protocol that provides Liquidity as a Service (Laas). It has innovatively proposed a discrete liquidity automated market-making model and raised over $50M from investors including IOSG Ventures, Distributed Capital, Hashkey Capital, and BIXIN Ventures.
LayerBank: LayerBank is currently the largest lending protocol in the Manta ecosystem. The protocol has undergone an audit by Peckshield and currently has a TVL of $265M. It is deployed on Linea and Scroll, but the majority of TVL is in Manta.
Symbiosis: Symbiosis is a cross-chain DEX and liquidity protocol. It has raised $2M from investors including DWF Labs, Shima Capital, Binance Labs, Dragonfly, and Amber Group.
PacificSwap: PacificSwap is a DEX protocol based on the ve(3,3) model, developed based on the Pancake Swap model and utilizing the innovative CLAMM algorithm.
AsMatch: AsMatch is an online dating application based on zero-knowledge proof (ZK). Users can swipe left or right to choose matches or reject other users. They can also enter zkSBT’s ZK Proof Key in the app to verify on-chain behavior and identity. It falls under the Social category within Manta.
Orbiter Finance: Orbiter Finance is a decentralized Rollup bridge for transferring native Ethereum assets, providing infrastructure for Layer 2. It is one of the largest cross-chain bridges and has raised $3.2M from Starkware, Amber Group, and others.
Minibridge: Minibridge is a cross-chain bridge optimized for small-value transfers, offering low fees and fast settlements. It has been ranked as users’ favorite bridge on dappsheriff and offers a 50% fee discount during the New Paradigm campaign. MiniBridge is an award-winning team from the Ethereum Shanghai 2023 hackathon.

With the upcoming launch of MANTA tokens in 2024, the token airdrops brought by MANTA tokens will undoubtedly further enhance the attention on L2 in the first quarter of 2024. Additionally, as Manta integrates with Celestia in the next phase, the dual features of modular blockchain and ZK EVM will provide unique advantages for Manta.
Therefore, with most projects in the ecosystem yet to launch their tokens and the strong backing of Binance investments, the level of activity on the chain is much smaller compared to chains like Zksync. By actively participating in the interactions within the chain, increasing asset returns, and capitalizing on future ecosystem airdrops, it can be said that this is a highly cost-effective operation.
*This article is authorized to be reposted from BitEye.