Lido Updates Development Plans for Layer-2 Platforms

Following the announcement of its Layer-2 development roadmap in mid-July, Lido has recently provided an updated and detailed plan for this initiative.

Lido Updates Development Plans for Layer-2 Platforms

In July 2022, Lido Finance first unveiled its intention to deploy products on Layer-2 solutions, allowing users to stake stETH with optimized costs.

Read more: Lido Makes a Strong Comeback Following Positive Signals from The Merge

Recently, Lido disclosed more detailed information about this plan on its forum.

According to the update, the implementation steps include:

• Establishing token bridges with Layer-2 solutions, initially focusing on Arbitrum and Optimism.
• Setting up infrastructure that can be upgraded in the future to support ETH staking on Layer-2.
• Deploying governance contracts to ensure Layer-2 will have similar voting features as Mainnet L1.

Notably, during the token bridge creation phase, due to the complexity of stETH (a rebase token with a balance that changes over time), Lido will start with wstETH (a wrapped version of stETH).

The team also mentioned that the bridges to Arbitrum and Optimism are already set up but currently in “Pause” mode. After completing the snapshot and voting process, these bridges will be officially activated.

With Layer-2 solutions, especially Roll-ups, experiencing significant advancements, Lido’s presence on these platforms will invigorate the Layer-2 ecosystem in the near future.