mETH / ETH Basis Perpetual

mETH / ETH Basis Perpetual

Field	Details
Oracle Feed	Pyth crypto-meth-eth-rr, providing a real-time price ratio of mETH relative to ETH.
Market Type	Basis Perp. This instrument tracks the discount or premium of the Mantle Liquid Staking Token (mETH) against native ETH. It allows for pure-play exposure on the LST "basis."
Floating-Rate Definition	The floating index, r_float, is the percentage deviation of the mETH/ETH price ratio from 1, expressed in basis points (bps).
dPnL Formula	This market uses a standard fixed-vs-float model. The fixed rate, r_fix, is determined at the time of trade.
Use Cases	LONG (Betting on convergence/premium): • Profit if the mETH discount narrows and its price moves closer to ETH (i.e., r_float moves toward 0). • A capital-efficient way to speculate on positive sentiment for Mantle's LST without holding the spot token. SHORT (Hedging or betting on divergence): • A user who just minted mETH can short the perp to lock in the current discount, hedging against it widening before they can exit their position. • Stabilize the USD value of a mETH treasury holding by hedging out the basis volatility.
Target Users	LST Treasuries, Staking Desks, Arbitrageurs, DeFi Power Users.
Volatility	Historical (\sigma) of the mETH/ETH basis is estimated at 150 bps/yr.
Leverage Math	The volatility cap is ~28x. The governance hard-cap is set to 20x for initial launch prudence.
Margin Numbers	IM approx 0.28% of notional; MM = IM / 2.
Cross-Margin Note	The most powerful use case: A user can post mETH itself as collateral to open a short position. Our risk engine recognizes this as a nearly perfect hedge and will require minimal additional initial margin.