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Cheaper Ethereum – ETH staking introduced on Lido

Staking L2 – The DeFi Lido protocol wants to deploy on all second-layer solutions ofEthereum (ETH)starting with the major layers 2.

Lido: liquid staking on Ethereum L2s

In a press release dated July 18, Lido announced its integration with second layer solutions of Ethereum.

Lido is a DeFi protocol liquid staking. Concretely, investors who lock their cryptocurrencies in the application, obtain derivative tokens in return. They can then use these tokens on other decentralized finance protocols.

Applied to Ethereum layer 2, this concept allows investors who stake their ethers on these second layers, to receive the derived token in exchange, staked ETH (stETH).

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Priority integration for second major layers

The protocol will begin to support ether staking, using bridges to layers 2, and using the staked ETH wrapped (wstETH). Eventually, investors will be able to stake their assets directly on second-layer networks, “ without the need to establish a bridge which allows them to bring their cryptocurrencies back to the Ethereum mainnet.

Today, Lido is already integrated with the second layer network, Aztec, and the provider of wallet level 2, Silver. He will announce the next integrations, in the coming weeks.

The protocol will start with the major layers 2, such as Arbitrum and Optimism. It will subsequently extend its partnership and integrations to second-layer networks, which have demonstrated at a minimum, “ their economic activity “.

The future of staking on Tier 2 networks

Lido therefore foresees a promising future for second-layer solutions. Indeed, they allow their users to execute faster transactions at a lower cost.

The protocol estimates that these networks, whether dedicated to general or particular uses, will concentrate a large part (if not the majority) economic activity and volume of transactions “.

Lido bases its growth plan on the assumption that, ” this network will benefit or have need staking solutions “. These will thus serve to supporting the economic activities of their users while offering them the opportunity to help secure Ethereum.

Liquid staking protocols continue to expand, despite the current bearish backdrop. Lido wants to conquer all 2 layers of Ethereum, while its competitor Bitfrost has requested a credit, to propose its Kusama User Services (KSM), Polkadot’s Canary Network (DOT).

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