Metis Introduces Decentralized Sequencer Mining With Phase 2 Rollout

Metis, a top 10 Layer 2 network by TVL, launched the second phase of its decentralized sequencer upgrade.

Announced on April 23, Metis said Phase 2 of the rollout introduces METIS rewards for sequencer node operators and stakers, transaction pools, and the inclusion of multiple transactions within a single block.

Its novel "Sequencer Mining" mechanism will allow ordinary users to generate yields by staking assets through liquid staking token (LST) providers to earn LSTs. Node operators can also earn LST yields.

“With Sequencer Mining, sequencer nodes will earn METIS tokens for their role in processing transactions and generating blocks within blockchain networks using Layer 2 solutions,” Metis said. “LST providers will operate sequencer nodes, and users will be able to ‘stake’ via these LST providers, unlocking liquid tokens in the process.”

Metis noted that Artemis Finance and Enki Protocol were chosen as the two LST providers for its Alpha rollout through community governance. “Users will be able to deposit and start mining immediately through Artemis at launch, and Enki will offer a “Pre-Staking” program ahead of its Mainnet launch,” it said.

Artemis Finance is an LST protocol developed exclusively to support Metis’ decentralized sequencer.

Phase 2 will also offer 220,000 METIS ($14.6 million) in grants for LST protocols in a bid to promote the growth of its decentralized sequencer ecosystem this year.

Metis launched the first phase of its decentralized sequencer rollup last month, claiming to become the first Layer 2 rollup boasting decentralized transaction sequencing.

Metis pulls back

Metis surged to Layer 2 contention this year, with network TVL soaring more than 900% from $97.6 million in mid-December to $968.4 million one month later, according to L2beat. However, its TVL has fallen by almost 47% since tagging an all-time high of $1.07 billion on March 12 to currently sit at $567.6 million.

Still, the value of assets held in Metis-native DeFi protocols has proved stickier than network TVL. The total value locked of Metis’ DeFi ecosystem fell 24% to $89.1 million from $110.4 million over the same period, according to DeFi Llama.

Yet despite the strength of Metis’ DeFi ecosystem, the METIS token has suffered heavy losses over the six weeks, crashing 53% to $66.4 from $141.6, according to CoinGecko.