Lido Launches Ethereum Staking on Arbitrum and Optimism
The Ethereum staking protocol Lido Finance has officially expanded to the prominent layer-2 solutions Arbitrum and Optimism.
Lido Finance, the leading ETH 2.0 staking platform, has established cross-chain bridges to layer-2 solutions Arbitrum and Optimism. This move aims to eliminate barriers to entry and reduce staking costs for stETH, aligning with previously announced plans.
Lido is now on L2 🏝️
— Lido (@LidoFinance) October 6, 2022
Bridge your staked ETH to Layer 2 protocols at the click of a button to benefit from lower gas fees and exciting DeFi opportunities.
Interested in: What is Arbitrum (ARB)? – The Most Detailed Information About ARB
Industry leaders, such as Coinbase’s CFO Alesia Haas, have previously expressed skepticism towards institutional staking due to concerns over asset lockup. As a result, Lido has offered flexible staking options and gained significant popularity.
Lido Finance is a versatile staking protocol, once holding the highest TVL (Total Value Locked) in the crypto sector. It gained prominence by allowing users to lock ETH for participating in The Merge upgrade. In return, users receive stETH, which can be traded on other DeFi platforms.
Lido currently holds around 40% of the total staked assets on Ethereum 2.0’s Beacon Chain. The project allocates 150,000 LDO in rewards each month since launching the bridged wstETH on each network. This initiative is designed to enhance the liquidity of wstETH through farming programs on DeFi partners like Balancer, Curve, and Kyber Network.
Recently, Lido has been active in governance activities, including proposals to sell 2% of the total LDO supply, limit staking, and adjust voting weights in the ETH 2.0 staking pool.
For the layer-2 platforms Lido has entered today, Arbitrum is leading with a 51% market share and $2.42 billion in TVL. Meanwhile, Optimism also holds a strong position, with a 30% market share and $1.45 billion in TVL, according to L2beat.
