Lido announced on Monday that it would support wstETH on layer-2s, a wrapped version of stETH. The business believes this move will improve stETH’s market capitalization and usage while decreasing investor gas costs. Scaling staked ether (stETH) to layer-2 Ethereum protocols is what staking protocol Lido Finance is doing as the price of ether rises in preparation for its long-awaited “Merge” to Proof-of-Stake validation. What does this mean? Lower gas fees + expanded DeFi ecosystem⚡️ Lido on L2 is not limited to a single network, but will unfold via an ongoing roadmap of L2 scaling solutions. The supported Lido On L2 networks will be announced soon. — Lido (@LidoFinance) July 18, 2022 Beacon Chain For Proof-of-Stake (PoS) Investors in Lido stETH earn staking incentives when they lock ether on the Beacon Chain for Proof-of-Stake. Although the Beacon Chain Merging for ETH has been planned since 2020, Ethereum developers chose September 19 as their newest merge target last week. Holders of stETH will still have to wait six to twelve months to unlock tokens after The Merge. On integrated DeFi protocols like Curve, stowed ether can be traded. Rebasable Tokens However, layer-2s that do not enable “rebasable” tokens that alter the value in response to staking incentives are currently incompatible with stETH. As stated by Lido, wstETH delivers stETH a set value, enabling the wrapped token to be traded on well-known layer-2s like UniSw...
