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.

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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.

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