The liquid staking service Lido Finance has added support for two second-level solutions — Arbitrum One and Optimism.
Lido is now on L2 🏝️
Bridge your staked ETH to Layer 2 protocols at the click of a button to benefit from lower gas fees and exciting DeFi opportunities.
— Lido (@LidoFinance) October 6, 2022
According to the statement, this will expand access to Ethereum staking while reducing gas fees.
The Lido team first announced the integration of L2 networks in July. In August, developers updated the plan and named Arbitrum and Optimism as the initial targets.
Since October 7 they have enabled users to connect to both networks for liquid staking wrapped stETH — wstETH. It is expected that this version of the asset will ease its use across various DeFi protocols.
In Lido Finance they also announced the allocation of 150,000 LDO per month as rewards for using wstETH across all networks. This is meant to incentivize liquidity mining of the wrapped token with each DeFi partner such as Balancer, Curve Finance and Kyber Network.
Lido is allocating 150,000 LDO tokens in rewards per month from Oct 7 for wstETH across each network.
This begins with liquidity mining incentives for various DeFi partners to build wstETH liquidity, incl. @beethoven_x, @Balancer, @CurveFinance, @KyberNetwork & @VelodromeFi.
— Lido (@LidoFinance) October 6, 2022
According to L2BEAT, Arbitrum One and Optimism are the most popular Layer 2 scaling solutions for Ethereum with a TVL of $2.42 billion and $1.45 billion respectively. They account for more than 80% of the segment’s total.
ForkLog compared the advantages and disadvantages of the scaling technology used by both protocols—Optimistic rollups.
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