Lido Finance Introducing New Layer 2 Scaling Solutions

20.07.2022 09:33
by Maksym Prykhodko
1 min read

The popular “liquid staking service”, Lido Finance, is expanding into new Ethereum-based layer 2 scaling solutions. This means that Lido Finance users will be enjoying lower fees and a range of DeFi applications that can increase the users’ staking yields.

As part of its staking consensus mechanism, Ethereum requires at least 32 ETH for users to begin staking. However, Lido Finance allows users to begin staking with any amount of ETH.

In return, the stakers receive stETH (staked Ethereum) tokens. They can then use these tokens to mint the stablecoin DAI on MakerDAO or place a deposit on AAVE for more yield profits.

Lido Finance will begin its staking service expansion by providing support for the crypto wallet Argent. This wallet supports the layer 2 solution, zkSync, meaning that wrapped stETH tokens will initially be available to zkSync users. However, we are yet to see which other layer 2 solutions will Lido Finance introduce to its service next.

Author

  • Maksym has denied the existence of crypto as an asset for 3 years when he was working with standard financial instruments. Became Head of Treasury. Won the best bank employee award and left the bank for cryptocurrency exchange the next day. Got a second university degree, but that didn’t stop him from studying finance yet. Combines fiat and crypto experience to be as objective as possible in general matters. His dream is to be interviewed by Bloomberg.

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