Lido, the leading liquid staking system on Ethereum, said Thursday it will support a wrapped version of its popular staked ether (stETH) token to Ethereum layer 2 networks Arbitrum and Optimism.
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.
Each stETH token represents an ether (ETH) token staked with Ethereum’s network, meaning it helps to secure the network in exchange for rewards. stETH, which has a market cap near $5 billion, trades around the price of ETH and has become an extremely popular asset in Ethereum’s budding decentralized finance (DeFi) scene.
Arbitrum and Optimism allow users to transact in the Ethereum ecosystem without falling prey to the network’s historically high fees and slow speeds. These so-called optimistic rollups process transactions on networks separate from Ethereum’s congested main chain, bundle those transactions up and pass them back to Ethereum where they are added to its ledger.
Over $3 billion worth of cryptocurrency was circulating on Arbirtrum and Optimism’s networks at press time according to DefiLlama. Now, users of these faster and cheaper Ethereum sister networks will have access to wrapped staked ETH (wstETH), a “wrapped” version of stETH that has been bridged over from Ethereum.
