Staking Protocol Lido Is All Set To Expand To ETH Layer 2
According to a blog post, the Lido Protocol announced its next move towards Ethereum-based Layer 2 scaling solutions.
Road to Layer 2
Developers from the Lido staking protocol recently issued an official blog post, revealing their intentions of pushing towards multiple Ethereum Layer 2 solutions. As for availability, Lido mentioned that they will post their offerings on Optimism and Arbitrum in the beginning.
As for the upgrade, Lido’s Ethereum staking token wstETH will soon become wrapped and will be eligible for access in Layer 2 decentralized finance (DeFi). As of now, Lido only mentioned the support of this specific token, however they also assured integrations with rebasing stEth in the coming times. The development team is focused towards giving users the chance to choose their Layer 2 of their liking and letting them get their hands on Ethereum in a cheap way.
The blog post from the developers at Lido also mentioned that the project was compatible with several networks and that they were readying up to bring several Layer 2 solutions, which have proved to be quite economical.
As previously mentioned, the blog post stated that the offerings will soon show their presence on both Optimistic Rollup Solutions including Optimism and Arbitrum, meanwhile also managing to connect ZK-Rollup projects such as, Aztec and zkSync through Argent.
Lido’s Background
Lido is basically a staking protocol that works not only with Ethereum, but many other blockchains in the system. Lido provides users the opportunity to stake their Ethereum and gain access to stETH tokens, letting them utilize the tokens on different protocols.
Lido has been quite a popular platform in terms of staking because of their solutions letting users to develop yield from stalking and DeFi concurrently. stETH has daily rebasing to show its value in accordance with the value of Ethereum.
Developing Uncertainties on Lido
Lido might be popular in the staking region; however, it has been experiencing some uncertainty when it comes to the entire Ethereum ecosystem. Since more than 30% of the total Ethereum being staked goes through the platform, many have been questioning on whether the protocol is leading Ethereum to become more centralized.
A Decentralized Autonomous Organization has recently been looking to redefine the overall structure involved, in terms of brining more decentralization.
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