Lido Finance team will launch liquid staking in L2 solutions for Ethereum

The Lido Finance team announced the launch of the Ethereum 2.0 liquid staking service in the second scaling networkslevel (L2).

“Ethereum is scaling and Lido is following itexample. We are very excited to reveal our plans to expand the service on L2, starting with the expansion of stETH into the growing DeFi ecosystem [based on layer 2 solutions]. For users, this means staking with lower fees and access to a new set of decentralized yield applications,” the developers wrote.

Lido Finance — service for liquid stakingcryptocurrencies. The protocol allows you to deposit coins in a relevant 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 emphasized that it would not be limiteda separate L2 solution. The service will be launched “in all sufficiently verified second-level networks with demonstrated economic activity.” They plan to start with Arbitrum and Optimism.

To implement the plan, Lido has already been integratedwith Aztec and Argent. The first is a privacy-focused Layer 2 network using ZK-Rollups technology, the second is a crypto wallet provider that uses the zkSync solution from Matter Labs.

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

According to Duna Analytics, Lido isthe largest Ethereum 2.0 liquid staking service. It accounts for over 31% of all assets in the corresponding deposit contract. The TVL 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 Curve). 

Recall that in the same month, the decentralized organization behind the development of Lido initiated a vote to limit the share of the protocol in the Ethereum 2.0 staking pool.

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