Summary:
Mimo Labs proposes to deploy the KUMA Protocol on Mantle Mainnet.
Context
Following the successful deployment and launch of the KUMA Protocol on Ethereum, ahead of the upcoming launch of Mantle Mainnet, an Ethereum Layer 2, we propose to expand it to Mantle Mainnet.
The proposal presents an overview of the KUMA smart contracts (the “KUMA Protocol”) with the main features as well as proposed KIBT(s) (already approved by the DAO) to be deployed. The proposal requests a vote from vMIMO holders regarding a potential deployment on Mantle Mainnet when the chain will be launched.
Note: There is currently no ETA for the deployment of Mantle Mainnet. However their recent communication suggests that the launch is just around the corner.
Rationale:
Following KIP-2 et KIP-2.2 the KUMA Protocol has been deployed on Ethereum with USK and EGK as two first accepted KIBTs:
- The USK is a KUMA Interest-Bearing Token backed KUMA NFTs, themselves backed by 12 Months US T-Bills. The token deployment has been approved by the DAO in the KIP-2.1.
- The EGK is a KUMA Interest-Bearing Token backed KUMA NFTs, themselves backed by 740 days Next.e.GO Mobile SE Corporate Bonds. The token deployment has been approved by the DAO in the KIP-4.
Deploying the protocol on Ethereum has been a good way to bootstrap the protocol. KUMA was designed to enable anyone, from as little as $0.0001, to become exposed to tokenized bonds in a permissionless way. However, due to the high gas fees on Ethereum (several tens of dollars for a swap), it is virtually impossible for small investors to access the available tokens, as it is not profitable for them.
Mantle Overview
Mantle is an EVM-Compatible Ethereum Layer 2 which is using Optimistic Rollups technology. Optimistic Rollups (ORs) are Layer 2 (L2) protocols designed to increase the throughput of Ethereum. They reduce computation load on the main Ethereum chain by taking computation and state storage off-chain and processing transactions in batches.
Mantle Network has been built with a modular architecture that combines an optimistic rollup protocol with an innovative data availability solution. This allows Mantle Network to inherit security from Ethereum and offer cheaper and more accessible data availability.
Secured by Ethereum
The validator nodes collect transactions from users and commit them to Ethereum in the form of a “compressed block”. This compression saves users expensive gas fees and increases the total possible throughput for transactions.
By building on top of Ethereum, Mantle Network inherits desirable features like-
- Ethereum-grade security: L2 state transitions are verified by Ethereum validators, going through the same consensus and settlement process as L1 transactions.
- Common developer infrastructure: Smart contract development frameworks like Truffle, Hardhat, Foundry, Remix, etc., languages like Solidity, Vyper, Yul, etc., and libraries like Web3.js and ethers.js, etc. can all be used on Mantle.
Modular Architecture
Mantle Network takes a modular approach with chain design. While monolithic chains perform transaction execution, consensus, settlement, and storage at the same network layer, these processes are handled by separate modules on Mantle Network. In its initial Mainnet version, Mantle Network functions as a Smart Contract Rollup with modular data availability. Hence,
- Mantle’s execution layer provides an EVM-compatible environment for transaction execution where the sequencer produces blocks on L2 and sends state root data to L1
- Consensus and settlement take place on L1 Ethereum
- Data availability services are provided to network actors through Mantle DA, an implementation of EigenDA in collaboration with EigenLayer, that stores callback data that would be published to L1 in traditional rollups
Sequencer Properties
The centralized sequencer on Mantle Network produces L2 blocks by including transactions in them in the order they are received by the nodes. It also publishes updated state roots to L1.
We include can additional sequencer module referred to as Threshold Signature Scheme(TSS). This module consists of a set of whitelisted node operators who sign blocks and contribute to multi-party signatures that help improve the correctness of off-chain transaction execution results. In the event that an N of M threshold is not met, the sequencer may re-sequence a batch of L2 blocks, or transition to a backup sequencer.
Fraud Proofs
Optimistic Rollups execute transactions that result in state transitions, and updated state data are published to L1 Ethereum assuming their validity and without providing any direct proofs for the same. Mantle Network sends updated state data to a State Commitment Chain (SCC) contract on L1, where network actors can challenge its validity within a challenge period (currently set to 7 days). If the state data goes unchallenged, it is considered valid and final and withdrawal requests that rely on this state data can be processed by other smart contracts.
If a commitment gets challenged, a verifier interacts with the challenger to narrow down the invalidity to a single state transition, at which point its validity is established by executing it. In case of a successful challenge, the state transition is discarded and the contract accepts the valid version of the updated state submitted by the challenger.
Data Availability
Through the use of EigenLayer’s Data Availability (DA) solution EigenDA, Mantle Network’s DA implementation is able to increase transaction throughput beyond traditional L2s. Accessible DA also means Mantle can increase throughput without compromising on security and reducing the overhead of node operations. This decreases the processing requirement for validators and promotes increased decentralization.
You can learn more about Mantle in their technical documentation: Overview - Network
In line with the deployment of USK and EGK on Ethereum, we propose their creation on Mantle Mainnet with their same respective RiskCategory.
- USK: The KIBT would be backed by 12 months US T-Bills, tokenized on-chain as NFTs by Mimo Capital AG. Below are the informations of the KUMA NFT:
- currency: USD
- issuer: US
- term: 12 (months)
- EGK: The KIBT would be backed by 740 days Corporate Bonds, tokenized on-chain as NFTs by Mimo Capital AG. Below are the informations of the KUMA NFT:
- currency: EUR
- issuer: Next.e.GO Mobile SE
- term: 740 (days)
Note: The KIBTs deployed on different chains wouldn’t be seamlessly bridgeable between chains. However, KIBTs holders would be able to get back the KUMA NFTs from KIBTs then ask Mimo Capital AG to burn their NFT on a chain A to mint them on a chain B, then sell the NFT for KIBTs.
With more than 1M addresses created and 14M transactions processed on their testnet, deploying the KUMA Protocol on Mantle Mainnet would open up new markets, both in terms of users and integration; by making KUMA the first RWA tokenization protocol deployed on Mantle.
Note: The Mimo Labs team is currently in discussions with DEXs and Lending protocols teams that will deploy on Mantle to integrate KUMA KIBTs inside their protocols.
Means:
- Human Resources: Multisig signers will need to sign transactions to execute the proposal
- Treasury Resources: There is no cost for the treasury to deploy the protocol on Mantle Mainnet. (Mimo Labs team will cover the cost of deployment)
Technical implementation:
If the proposal is approved, a second proposal will be posted detailing the protocol deployment plan.
Voting Options:
- Accept to deploy the protocol on Mantle Mainnet
- Against/Rework the proposal
- Abstain
Authors: @JeanBrasse from Mimo Labs
Sentiment poll:
- Accept to deploy the protocol on Mantle Mainnet
- Against/Rework the proposal
- Abstain
KIP-6┃Deploy KUMA Protocol on Mantle Mainnet
Vote here 
With over 6.2M votes from $vMIMO holders, KIP-6 has been approved !