Lido Finance unveils plans to bring stETH to Layer 2 chains

Ethereum's largest liquid staking protocol Lido Finance announced that stETH, a staked version of ETH, is soon to be traded on several Layer 2 networks and plans to expand its L2 footprint in the near future. With this move, the company believes it will achieve lower fees for users and spread its outreach to a variety of DeFi applications, the blog post says.

Lido is launching stETH on Layer 2 🏝️

Ethereum is scaling, and so is Lido.

Lido stakers will soon be able to use their stETH assets in DeFi on Layer 2.

Read more about it here: https://t.co/QCsQry4V41
— Lido (@LidoFinance) July 18, 2022

The Lido team announced that their platform is “network-agnostic” (network-agnostic is a term used to describe a project which is generalized so that it is interoperable among various systems) and their intention is to expand to several L2 networks that have proven to be economically active, starting out with L2 heavyweights Optimism and Arbitrum. “Lido has already integrated with Argent to make wstETH available on zkSync users and with Aztec”, the blog post goes on.

At the start, the platform will support wstETH bridging and staking on Layer 2 networks. wstETH is the wrapped, non-rebasing version of Lido’s stETH. Later on, the protocol will enable staking ETH directly on Layer 2 networks “without the need to bridge their [users'] assets back” to the Ethereum mainnet.