It was revealed on Twitter that the leading staking service provider Lido would now facilitate the bridging of assets to Layer 2 protocols.
Lido enables users to stake ETH in exchange for staked ETH (stETH). Wrapped staked ETH (wstETH) is a token that can be bridged to Layer 2 networks Arbitrum One and Optimism. According to Lido, wstETH will facilitate ease of integration among DeFi partners while keeping the unique qualities of stETH. Users are provided with guides on how to wrap stETH for wstETH.
On October 7, 150,000 LDO tokens will be granted monthly to power wsETH awards across partner networks, commencing with mining liquidity incentives across DeFi platforms such as Beethoven X, Balancer, Curve Finance, Kyber Network, and Velodrome.
Since their introduction in 2021, Layer 2 networks Arbirtum and Optimism have had a boom in transaction volume, with both recently reaching a high of over 200,000 daily transactions, according to statistics from The Block Research.
By connecting with Layer 2 networks, Lido users are able to escape the congestion and expensive gas costs on the Ethereum network and instead execute transactions on nearby networks intended to coexist with Ethereum. This will assist regulate the number of blockchain transactions.