DeFi and CeFi Collide as Bybit Embeds Mantle into Its Trading Core

Bybit and Mantle Network have announced a strategic alignment through the integration of Mantle 2.0 into the Bybit ecosystem, signaling a pivotal development in the ongoing convergence of decentralized finance (DeFi) and centralized finance (CeFi). The collaboration aims to bridge the gap between the two segments by leveraging the liquidity depth of centralized exchanges and the governance benefits of decentralized systems. As part of this initiative, Bybit executives have joined as key advisers, and a new roadmap has been unveiled that emphasizes institutional-grade infrastructure for tokenized real-world assets (RWAs) .

Mantle Network, launched in 2021 as an Ethereum layer-2 (L2) scaling solution under BitDAO, has evolved into a standalone brand with its own native token, MNT. The consolidation of BitDAO and Mantle Network in July 2023 marked a shift in the project’s identity, setting the stage for the Mantle 2.0 era. This phase is characterized by a stronger institutional focus, with plans to develop Mantle as the primary "liquidity chain" for RWAs. According to Delphi Digital, this transition represents a broader industry trend where DeFi protocols are integrating with CeFi platforms to create hybrid financial infrastructures .

The partnership has already led to the introduction of exclusive products and campaigns for MNT token holders on Bybit. On August 18, Bybit launched several initiatives, including earn products and promotional campaigns to incentivize MNT adoption. Further developments came on August 29, when Bybit and Mantle revealed a combined roadmap that offered MNT holders benefits such as reduced slippage in trades, expanded payment options, and access to savings and staking tools. These features are designed to enhance user experience and drive greater utility for the MNT token .

A key outcome of this collaboration is the transformation of MNT from a governance-focused asset to a utility token deeply integrated within Bybit’s ecosystem. Delphi Digital noted that this shift anchors the MNT token’s value to Bybit’s daily trading volume—estimated at $3–$5 billion for spot trading and over $25 billion for derivatives—beyond traditional governance functions. This repositioning suggests a new competitive landscape where DeFi protocols are not only coexisting with CeFi platforms but also leveraging them to achieve broader adoption and liquidity .

Mantle’s integration into Bybit’s ecosystem also opens new capital access channels through the Mantle EcoFund, a $200 million pool aimed at supporting native applications within the network. Bybit’s backing is expected to strengthen Mantle’s financial infrastructure, offering access to grants, strategic investments, and institutional partnerships. Some of the fund’s strategic partners include venture firms such as Dragonfly, Pantera, Spartan, and Hashkey Capital. This influx of capital and strategic support could further accelerate the project’s roadmap and adoption .

The deepening relationship between Mantle and Bybit has, however, raised questions about the decentralization of Mantle’s governance structure. While the network remains technically governed by a DAO, the significant influence of Bybit within the ecosystem has led to concerns about the balance of power. Delphi Digital highlighted this issue in its report, noting that the convergence of DeFi and CeFi is reshaping the industry’s landscape but also introducing new governance challenges that require careful navigation .