Users will be able to use their staked Ether on Ethereum Layer-2 (L2) networks.
Lido, the largest Ether staking service, has recently announced its plans to expand the support of stETH (staked Ether) on Ethereum’s Layer-2 DeFi system.
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According to the official announcement posted on Lido blog, this change will result in lower staking fees and will provide access to new DeFi applications, which will help to enhance yields.
Lido is a decentralized staking solution designed for Ethereum and other blockchains. In the platform users stake their ETH to gain stETH, which is then put to work in other protocols.
Lido assures its users that its main goal has remained the same since going live in December of 2020.
...to simplify the Ethereum staking experience by mitigating a number of the challenges associated with the staking experience and democratizing staking for the average ETH holder.
In the blog, Lido claims that they have already started working on making the staked-asset tokens acquired on their platform, available through Ethereum Layer-2. The claim is justified by announcing the integration of Argent and Aztec to their bridge staking services.
The expansion will begin by supporting only wstETH, which is also known as wrapped stETH (staked Ether). Highlighting its properties of simplified bridge contracts and simple integration.
After full integration, Lido plans to support stETH on various Layer-2 networks, which have “demonstrated economic activity”, initially beginning their journey with Arbitrum and Optimism.
