Lido Brings stETH To DeFi On Layer 2
- Lido brings stETH to decentralized finance (DeFi) on Layer 2
- Ethereum stakers can now stake with lower fees
The non-custodial staking solution for the Ethereum, Terra, and Solana blockchains, Lido has recently announced that it is bringing stETH to DeFi on Layer 2.
According to the official announcement, the company is planning to expand itself on L2, starting with the expansion of stETH across the L2 DeFi ecosystem. For Ethereum stakers, the announcement brings good news as they can now stake with lower fees and with access to a new set of DeFi applications to increase yields.
Moreover, the company reveals that the Lido on L2 is not restricted to a particular network or solution and aims to make Lido’s staked-asset tokens widely available throughout Ethereum L2 in the coming months. To achieve that, the company has already integrated with Ethereum wallet Argent to make wstETH available to zkSync users.
Lido went on to inform the community that it is working on the new integrations and partnerships that will be announced in the coming weeks.
Launched in December 2020, soon after the Ethereum 2.0 Beacon Chain launched, Lido aims to “simplify the Ethereum staking experience by mitigating a number of the challenges associated with the staking experience and democratizing staking for the average ETH holder.”
Ethereum reaches the network’s current capacity with more than a million users per day. The increasingly high demand has caused the gas price to touch the sky and resulted in an urgent need for scaling solutions.
“We [Lido] believe that our expansion to L2 is the next step on this journey to further improve Ethereum staking accessibility,”
the announcement reads.
There are several types of L2s and Lido believes that a large part of economic activity and transaction volume will shift to both general use and purpose-specific L2 networks in the future.
“Each of these networks will benefit from or need staking solutions to support their users’ economic activities and ensure that all users of Ethereum ecosystem networks have the ability to participate in securing Ethereum,”
the company stated.
The “network-agnostic” Lido has plans to support stETH on all sufficiently proven L2 networks, starting with Arbitrum and Optimism.
The company has also announced the release of a weekly educational series, L2sDays, which aims to drive awareness and understanding of the L2 ecosystem. With a focus on projects, concepts, and values that make Ethereum scaling possible, the series will feature guides and support content, AMAs, panel discussions, and a lot more.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
