DiFi leader Lido Finance introduced stETH on the Optimum network

TLDR

Lido Finance Expands to Optimism by Deploying stETH on Layer-2 Solution Users benefit from daily rewards and multi-chain opportunities Lido Finance is offering stETH on multiple Layer-2 platforms Locked (TVL) Despite ecosystem growth, LDO token from the end of March decreased by 72%

Lido Finance, a decentralized finance (DeFi) platform for assets under management, has announced its expansion into Optimism, an Ethereum layer-2 scaling solution.

This move will allow users to deploy Lido's stETH token on Optimism, opening up new opportunities for stocks and production.

The expansion into Optimism is part of Lido Finance's broader multi-chain strategy. By offering stETH and wstETH on a variety of Layer-2 platforms, including Arbitrum, Base, Linea, and Scroll, Lido aims to provide users with more flexible options for saving Ethereum (ETH).

A Lido Finance blog post highlights that users who choose to deploy stETH on Optimism will receive daily rewards. In addition, you will benefit from a seamless bridging experience and access to new multichain opportunities.

As Ethereum's Layer-2 solutions are designed for scalability and cost-effectiveness, this expansion is expected to enhance the user experience by offering cheaper transactions.

The platform's development comes after Ethereum's transition from proof-of-work to a proof-of-interest consensus mechanism in 2022, known as the “consolidation.” This shift introduced a staking system where validators secure and process transactions on the network.

To run a full node and compete for rewards, users need to lock in 32 ETH, which is out of reach for most investors.

Lido Finance solves this obstacle by allowing users to share small amounts of ETH without having to run a full node. This service has proven popular, contributing to Lido's significant market position in the Defy area.

As of October 16, 2023, data from DeFillama shows Lido Finance manages more than $25 billion in total value locked in (TVL). The protocol generated more than $845 million in revenue last year and has generated more than $1.8 billion in revenue since its launch.

Lido Finance provides not only Ethereum staking, but ETH holdings on multiple Layer-2 networks as well as off-chain solutions.

This approach corresponds to the growing trend of Layer-2 adoption in the Ethereum ecosystem, which aims to improve scalability and reduce transaction costs.

Although the LDO finance ecosystem is expanding and has a strong market position, the native LDO has faced challenges in the cryptocurrency market.

After peaking in March 2023, LDO has experienced a significant decline, with its value down 72% over the past nine months. This price action contrasts with platform growth in terms of assets under management and network expansion.

The recent gains seen on October 14 were not enough to break the highs from September or reverse the losses accumulated since March.

This price performance highlights the complex relationship between platform adoption and token value in the DeFi sector.