Largest ETH 2.0 staking pool Lido protocol expands its activity
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One of the largest ETH 2.0 pools, the Lido protocol, has announced the expansion of its activity. Through a post on the official website, the development team revealed the new plans for the protocol.
According to Lido, the protocol will expand to various Layer 2 network solutions. Lido has confirmed that it will initially launch the offering on Optimism and Arbitrum.
Lido protocol expands
Lido is a staking service provider for Ethereum and other blockchains. It allows users to stake their ETH to get stETH. With these tokens, users can stake across multiple protocols.
Lido is a major player in the so-called “net staking” space and has risen in popularity over the past year. This is because their product allows users to earn staking and DeFi income at the same time. stETH is a token that reflects the increasing amount of ETH it represents.
In the blog post, the Lido team revealed that the plan was to expand to multiple Tier 2 solutions that “demonstrated economic activity”.
Optimistic Rollup and Arbitrar
The post confirmed that it would be released first on Optimistic Rollup and Arbitrum solutions. In addition, Lido has already integrated the ZK-Rollup Aztec and zkSync projects via Argent.
As the company reported, the expansion will be possible through a “encapsulated” version of stETH, wstETH. The aim is to allow users to participate in protecting the Ethereum network at a low cost.
Lido’s place within the Ethereum ecosystem has been the subject of debate in recent months. This is because 31% of the total staking ETH supply is processed through the protocol.
Therefore, this raises concerns that Lido is making ETH more centralized. The DAO recently rejected a proposal to limit Lido’s potential market share in ETH 2.0.
