Staking protocol Lido extends to Ethereum layer 2
Key receivers
The Lido development team has announced plans to extend the protocol to various Ethereum Layer 2 scaling solutions. Initially, a packaged, non-restored version of stETH aims to be available on all Optimistic Rollups and ZK-Rollups across the DeFi ecosystem. With more than 31% of ETH being processed through Lido, the protocol is a major force in securing the Ethereum network.
Share this article
Lido has confirmed that it will start its offering on Optimism and Arbitrum first.
Securing Ethereum at Layer 2
Lido is expanding to layer 2.
A Monday blog post from the Staking Protocol development team revealed that Lido will expand to multiple Ethereum Layer 2 solutions. Along with the update, a version of Lido's ETH staking token coded as wstETH will soon be available on Layer 2 DeFi.
Lido is an important service provider for Ethereum and other blockchains. It allows users to pay ETH to get stETH, a token representing their stake, which allows them to work in other protocols. Lido is a leading player in the so-called “liquid staking” space, and its product has increased in popularity over the past year as it allows stakeholders to simultaneously access staking and defi products. stETH is created periodically. To reflect the increasing amount of ETH it represents.
In a blog post, the Lido team said that the project plans to expand to a number of Layer 2 solutions that are “network-agnostic” and “economical.” The post confirmed that it will first launch on Optimistic Rollup Solutions Optimism and Arbitrum. It also integrated the ZK-Rollup projects Aztec and zkSync through Argentina.
The expansion is possible with a wrapped, non-rebaseable version of stETH called wstETH. This will initially be the only token supported, although the protocol has stated that it plans to integrate stETH in a future iteration. According to the team, the goal is to enable users to participate in securing Ethereum at a lower cost than Layer 2 of their choice.
Lido's place was in the Ethereum ecosystem. The subject of debate With more than 31% of the ETH supply being processed by the protocol in recent months, Lido has raised concerns that it may inadvertently centralize Ethereum. The DAO recently a Proposal ETH to limit Lydon's potential market share; even if Discussing Implementation of a new management structure that is more decentralized in the decision-making process.
Disclosure: At the time of writing this feature, the author owns ETH and several other cryptocurrencies.
Share this article
The information on or included in this website is obtained from independent sources that we believe to be accurate and reliable, but we make no representations or warranties as to the timeliness, completeness or accuracy of any information on or accessible from this website. . Decentralized Media, Inc. Not an investment advisor. We do not provide personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may be out of date, or may be incomplete or incorrect. We may, but are not obligated to, update any outdated, incomplete or inaccurate information.
You should not make an investment decision in an ICO, IEO or other investment based on the information on this website and you should never interpret or rely on any information on this website as investment advice. If you are seeking investment advice on an ICO, IEO or other investment, we strongly recommend that you consult a licensed investment advisor or other qualified financial professional. We do not receive compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities or commodities.
See full terms and conditions.
