Lido Finance is a pioneer in crypto staking services. From fears of shrinking liquidity for the staking derivative to Lido’s native token skyrocketing to a weekly-high of $0.66, the organization has stood its ground. However, Layer 2 is the next step for the platform.
Bridging the gap
Lido published this blog post on July 18th. confirmed the launch of the offering of staked Ether (stETH) support across the ecosystem of Ethereum Layer two (L2) networks, Optimism and Arbitrum. This development was later shared by the team on their social media platforms.
Lido will launch stETH Layer 2🏝️
Ethereum is scaling and Lido too.
Lido stakers on Layer 2 will soon be able use their stETH assets to DeFi.
Learn more: https://t.co/QCsQry4V41
— Lido (@LidoFinance) July 18, 2022
The network would support Ether staking via bridges to L2s using Lido’s ETH staking token, dubbed wstETH. This will allow Ethereum stakers to take part in staking at lower fees, and gain access to a new set of DeFi applications that can increase their yields.
This also means that users could stake directly on the L2s “without the need to bridge their assets back” to the Ethereum mainnet.
L2 expansion may be the next step towards improving Ethereum staking accessibility. The team is working to achieve this goal. added,
“Lido has already integrated with Argent To make wstETH accessible to zkSync users, and with Aztec. Now at last we can announce that we are working on the next collection of integrations and partnerships that will be unveiled in the coming weeks.”
But this isn’t it for the platform. Lido Finance has opened Vote and plans to purchase 2% of total LDO (20 Million LDO) at a cost of $1.45 Dragonfly will lead The purchase and investment of 10 million LDOs. LDOs sold will be immediately unlocked with full voting rights.
LDO also appears on the list with the highest trading volumes used by ETH whales. Meanwhile, the Lido DAO token’s 24-hour trading volume skyrocketed by over 400% to stand at $142.3 million.
Such developments definitely end up having a rippling effect on the network’s performance. According to Dune Analytics, Lido’s total value locked (TVL) increased significantly over the past 30 days. This figure stood at $6.4 million at the time this article was written.
In addition to these spikes, LDO token also saw tremendous growth in the past seven days, particularly in daily active addresses and transaction volumes.