Mantle's Methamorphosis could be a wildly underrated play.

(Considering mETH's TVL is 20x lower than Lido's stETH.)

I walk through how I'm allocating 0.22 mETH on both Mantle and Ethereum for a potential 5-in-1 airdrop strategy:

Methamorphosis Campaign Overview

Methamorphosis is @0xMantle's liquidity campaign where you earn Powder based on your Mantle ETH (mETH) holdings.

This is a 100-day campaign that ends on 9 October.

Powder earned in this campaign will be converted into COOK (governance token for Mantle's LSP, similar to LDO).

The Powder earning rates differ based on:

• The network you hold mETH (Mantle/Ethereum)

• The type of protocol you deposit into

These are the 2 routes I'm using to maximize my Powder earned:

Getting mETH

Before diving into the strategies, here's a quick guide to get mETH on both Ethereum and Mantle.

Since gwei is low, getting mETH on Ethereum is considerably cheaper.

I spent ~ $1.15 to stake ETH for mETH:

My mETH Transaction

If you want to get mETH on Mantle, there are 2 possible routes:

• Bridge mETH from Ethereum to Mantle

• Use @JumperExchange via swapping/bridging to get mETH

It cost me $2.80 at 1.6 gwei when using the mainnet bridge.

Here's what I did on both networks to interact with other tokenless protocols:

Strategies on Mantle

There are multiple strategies to earn Powder on Mantle, and I share my evaluation of them below:

1. Adding Liquidity to mETH/USDT Pools: 40x Powder/day

This earns the most Powder but incurs the highest risk.

Your liquidity has to be within the +/- 30% range of the mETH market price to earn Powder.

This involves too much active management with constant rebalancing, so I don't intend to use this strategy.

2. Adding Liquidity to mETH/WETH Pools: 30x Powder/day

This has a lower risk than the mETH/USDT pools, so the impermanent loss you incur is less.

Only liquidity within the +/- 3% range of the mETH market price will be counted.

I prefer to use this as the final step of my strategy, while I interact with these protocols first:

3. Depositing into Other Mantle DApps: 20x Powder/day

A wide variety of DApps are within this tier, including:

• Liquidity (Circuit, Tsunami)

• Lending/borrowing platforms (Init, Aurelius, Dolomite)

• Yield (Vertex/Timeswap)

• Restaking (Karak)

Some of these DApps are tokenless, and I see potential looping plays to maximize mETH holdings to earn Powder.

4. Holding mETH on Mantle: 10x Powder/day

Not much to say, but it's a waste if you're just holding mETH since there's so much more you can do with it.

My Mantle Route

• Deposit mETH on Dolomite and borrow ETH

• Swap ETH to mETH on JumperExchange

• Deposit mETH on Aurelius and borrow mETH

• Deposit mETH on Karak or other alternatives

Why I Chose These Protocols:

Dolomite: Tokenless and has both Minerals (points system) and XP that could count towards your airdrop.

Aurelius: Another underfarmed protocol that has a points system (Salt).

Karak: A restaking protocol to deposit mETH, but it has a 7-day unstaking period.

If you're not comfortable with this unstaking period, then here are other 'more liquid' options:

• Add liquidity into mETH/WETH (higher points)

• Borrow WETH by depositing mETH on Timeswap (another tokenless protocol)

• Deposit on Minterest

I don't recommend Timeswap since the interest rate is quite high.

You may have noticed that I didn't mention some options:

Stargate: No farm is available for mETH, so it's not worth depositing since you don't earn extra STG yield.

Init: Others would recommend this, but it's way more overfarmed than the 2 options I mentioned (Aurelius and Dolomite), so I prefer those instead.

Strategies on Ethereum

There are fewer options and lesser earning potential on Ethereum.

But I still see potential opportunities to interact with tokenless protocols.

You earn 5x Powder/day by depositing into any of these protocols:

• EigenLayer

• Karak

• Zircuit

• Symbiotic

You do not earn any Powder just by holding mETH on Ethereum.

Sadly, some of my mETH is locked up in Swell and Eigenpie.

And it's not worth withdrawing for this campaign since there's an 8-16 day wait.

Meanwhile, I hold some mETH that I plan to restake on Symbiotic.

But while I'm waiting for the caps to open again, it's pointless for me to hold mETH.

This leaves me with 2 options:

• Karak

• Zircuit

There's no point staking on Karak since it makes more sense to bridge to Mantle and earn 20x Powder.

And since Zircuit has no withdrawal period, I parked my funds there for the time being.

It cost me $2 at 4.4 gwei to deposit my funds on Zircuit.

I plan to unstake from Zircuit when Symbiotic raises its caps to gain exposure to this restaking protocol.

Summary of My Strategies

Mantle:

• Loop mETH across multiple lending/borrowing platforms

• Use Karak (7-day withdrawal period) or adding mETH/WETH liquidity as the final step

Ethereum:

• Deposit mETH into Zircuit (temporary)

• Withdraw from Zircuit and deposit into Symbiotic once caps are lifted

If you found value in this guide, feel free to use my referral links below:

• Methamorphosis

• Aurelius

• Karak Invite codes: b6tE8 / 2QPI2 / 8cjAj / 38Vv1 / vo8kT

• Zircuit

Thanks for reading!

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