Lido Finance team announced the launch of Ethereum 2.0 liquid staking service on Tier 2 (L2) scaling networks.

Lido launches stETH at Layer 2 🏝️

Ethereum is scaling and so is Lido.

Lido stakers will soon be able to use their stETH assets in DeFi at Tier 2.

Read more about it here: https://t.co/QCsQry4V41

— Lido (@LidoFinance) 18 July 2022

“Ethereum is scaling and Lido is doing the same. We are very excited to announce our plans to expand the service in L2, starting with the expansion of stETH in the growing DeFi ecosystem. [на базе решений второго уровня]. For developers, users, this means access to a new set of decentralized apps to stake at lower fees and increase profitability.”

Lido Finance is a service for liquid staking of cryptocurrencies. The protocol allows you to deposit funds in a respective contract and receive in return the amount of “derivative” tokens that can be used in DeFi services. In the case of Ethereum, these are stETH tokens.

The project team stressed that they will not limit themselves to a separate L2 solution. The service will be launched “on all sufficiently verified second-level networks, with proven economic activity.” They plan to start with Arbitrum and Optimism.

It has already been integrated with Lido, Aztec and Argent to implement the plan. The first is a privacy-focused layer 2 network using ZK-Rollups technology, and the second is a crypto wallet provider using Matter Labs’ zkSync solution.

Initially, the team will provide support for packaged stETH (wstETH). Collaboration with the above two projects allows users to host wstETH on existing tier 2 networks.

According to Duna Analytics, Lido is the largest Ethereum 2.0 liquid staking service. It accounts for more than 31% of all assets in the relevant deposit agreement. TVL The value of the project is estimated at $6.25 billion.

In June 2022, the discount on stETH exceeded 5%. At the time of writing, derivative tokens are trading 2.3% below native Ethereum coins (on the Curve).

Recall that same month, the decentralized body behind the development of Lido initiated a vote to limit the protocol’s share in the Ethereum 2.0 stock pool.

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