At mETH Protocol, we pride ourselves on our clear standard of transparency.
Each unit of mETH is fully backed 1:1 by verifiable on-chain assets.
As of Nov. 7, the protocol holds 250,532.9 ETH against 232,045.1 mETH. This represents a collateralization rate of ~108%, backed entirely by native ETH.
Understanding the Overcollateralization Rate
Overcollateralization provides a safety buffer, ensuring that a system remains solvent even if collateral values fluctuate or if redemptions occur during periods of volatility. When it comes to risk management, this protects against price shocks, staking delays, or network imbalances.
For example, if ETH temporarily experiences a minor drop in value or delayed validator rewards, the system can still cover all outstanding mETH.
In this case, a overcollateralization rate of 108% implies that the protocol has 8% more collateral than total issued assets, a surplus that ensures coverage under most conditions.
Collateralization Composition
mETH Protocol verifies the collateral backing for both mETH and cmETH through an on-chain accounting framework designed to prevent double-counting.
mETH Collateralization
The underlying asset for mETH is ETH.
Total controlled ETH is calculated as: A + B + (C-D) + E + F
Where each variable represents the following:
- A = ETH allocated to deposits and pending unstake requests
- B = ETH deposited into validators
- C = Total ETH sent to the beacon chain deposit contract (including new stakes, reallocations, and compounding)
- D = ETH already processed by the consensus layer (deducted to avoid double-counting)
- E = ETH currently held in the consensus layer (sum of all validator balances)
- F = ETH allocated for claims but not yet claimed
cmETH Collateralization
For cmETH, the underlying asset is mETH.
Total controlled mETH directly correlates to the total supply of cmETH, defined as: A = A1 + A2 + A3 + A4
Where each variable represents the following:
- A = Total Controlled mETH
- A1 = Deposits in Boring Vault
- A2 = Position Managers
- A3 = Restaked Positions
- A4 = Delayed Withdrawals
*Note: These mETH and cmETH supply screenshots were taken as of Nov. 9, 2025. Current numbers may be subject to change.
Upcoming: Proof of Reserves
mETH Protocol will soon introduce a Proof-of-Reserves dashboard to further strengthen transparency standards. This dashboard will represent real-time data on collateral holdings for both mETH and cmETH, including validator balances, vault positions, and pending claims.
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