The plan to extend the L2 networks was initially announced in July. At that time, the team recognized that numerous layer-2 networks had shown economic activity.
Has debuted on two layer-2 networks, Arbitrum and Optimism.
The move will make Ethereum staking more accessible while also lowering gas fees.
The plan to extend the L2 networks was initially announced in July. At that time, the team recognized that numerous layer-2 networks had shown economic activity, with the fresh deployment to L2 networks Arbitrum and Optimism launched on Oct. 7.
Lido offers liquid staking, which gives stakers greater freedom because they may withdraw their funds at any moment, as opposed to staking Ethereum directly and having it locked up.
Industry leaders, such as Coinbase CFO Alesia Haas, have previously stated that institutional staking would not take off unless the problem of asset lockup is resolved. Lido offers this flexible or liquid staking option, which is why it has risen in popularity.
The initial wave of its layer-2 rollout allows Lido's wrapped stETH (wstETH) token to be bridged across the two networks.
stETH is an Ethereum liquid staking token issued by Lido in proportion to staked ETH. The wrapped version of the token maintains a continuous balance of stETH for usage in DeFi applications that require a constant balance mechanism.
Furthermore, Lido is distributing 150k LDO tokens in rewards per month from launch day for wstETH bridged across each network. The effort aims to boost wstETH liquidity for farming incentives on DeFi partners like Balancer, Curve, and Kyber Network.
According to its website, Lido has $7.4 billion in ETH staked, or around 5.5 million tokens, or almost 40% of the total invested. It was also stated that steth lost its peg to ETH earlier this year as the crypto contagion started to spread, but recovered quickly.
COINGABBAR VIEWS: The layer-2 networks it has selected to deploy first have a combined market share of 80%. As per reports, Arbitrum has a 51% market share and $2.42 billion in total value locked, while Optimism has a 30% share and a $1.45 billion TVL.
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