in a series of Tweets Made by Lido Finance [LDO] On October 6, the leading Ethereum company [ETH] The staking platform has confirmed the launch of ETH staking on two equity expansion solutions with token fermentation to Arbitrum One and Optimism.
Lido is now available in L2 🏝️
Connect your deposited ETH protocol to Layer 2 protocol with a click of a button to take advantage of lower gas fees and exciting DeFi opportunities.
– Lido (LidoFinance) October 6 2022
In July, Lido Finance implicit In this move, the team noted that the staking platform was “committed to making Lido asset tokens publicly available across Ethereum Layer 2 as it develops.”
According to Lido Finance, the first phase of the Layer 2 expansion will allow users to link stETH (wstETH) directly to Arbitrum One and Optimism to preserve “the unique properties of stETH in the process.”
He added that wstETH was chosen as the token of choice to enable easy integration between existing decentralized finance protocols.
In addition, the ETH staking platform intends to reward 150,000 LDO tokens per month starting October 7 for wstETH across each network.
This will take the form of liquidity incentives for DeFi partners such as Kyber Network, Curve Finance and Balancer to build wstETH liquidity.
The not funny head lies
According to data from blockchain analytics platform Glassnode, with 4.2 million ETH deposited through Lido Finance, the staking platform holds 30% of the overall ETH market share.
It is immediately followed by Coinbase, the central cryptocurrency exchange where 1.93 million ETH is stored.
It is worth noting that the exchange had an early start with ETH stakes since November 2020. Lido launched a month later, in December 2020, a few weeks after the launch of the Ethereum 2.0 Beacon Chain, and quickly became a force to be reckoned with.
With a year that has so far seen a series of market crashes, most notably the Terra crash, Lido’s Total Value Locked (TVL) has suffered severely after the TerraClassicUSD (USTC) outage.
According to DefiLlama data, Lido’s TVL had an all-time high of $18 billion before the USTC crash. However, at $6.19 billion at the time of writing, Lido’s TVL is down 66% since May.
However, the highly anticipated Ethereum merger occurred on September 15th. Unexpectedly, the hype surrounding the merger failed to cause any significant spike in the price of the ETH token.
Influenced by this, data from CoinMarketCap showed that the price of LDO has fallen by 17% since the merger took place.