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Lido Finance Ethereum

LIDO STAKING POOL WANTS TO EXPAND TO ETHEREUM L2s

Lido Finance, an Ethereum (ETH) 2.0 decentralized finance (DeFi) protocol, and third-party staking pool operator, aims to expand services across various Ethereum Layer 2 (L2) scaling solutions. Meanwhile, a new proposal seeks to secure around two years of “operating runway” in stablecoins for Lido DAO.

Lido announced plans to expand to several of Ethereum’s L2 solutions in a blog post on Monday. The team explained that they will first support ether staking via bridges to L2s using wstETH, a wrapped version of Lido’s ETH staking token.

Users will eventually be able to stake directly on the Layer-2s “without the need to bridge their assets back” to the Ethereum mainnet.

Layer 1 is the Ethereum blockchain, and Layer 2s are separate blockchains built on top of the L1 that extend and scale Ethereum by processing transactions outside of the Ethereum Mainnet.

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Layer 1 is the Ethereum blockchain, and Layer 2s are separate blockchains built on top of the L1 that extend and scale Ethereum by processing transactions outside of the Ethereum Mainnet.

According to the Lido team, the project is “network-agnostic,” with plans to expand to multiple L2s with “demonstrated economic activity.” They have already integrated bridged staking services into ZK-Rollup projects Argent and Aztec, and will soon launch on Optimistic Rollup solutions Optimism and Arbitrum.

Lido provides staking services for Ethereum and other blockchains. It is currently the largest provider of Ethereum staking services, with roughly one-third of staked ETH (stETH) deposited. Lido currently has more than ETH 4.25m (USD 6.5bn) staked on the platform, according to its website.

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