LDO Rewards And Ethereum Staking Launched On Layer-2 By Lido

Lido Finance, one of the largest staking providers for Merge has made a major announcement that involves Ethereum staking.

New Staking Feature

Lido Finance has confirmed that it has launched a new staking feature for users on two major layer-2 networks. These networks are Optimism and Arbitrum, and their role is to improve the Ethereum staking accessibility.

The major benefit for the users while performing Ethereum staking on the layer-2 networks would be reduced gas fees.

Unveiling of Plan

It was in the month of July when Lido Finance announced that it was working on the development of the new staking feature on layer-2 networks.

The teams at Lido Finance had stated that they were witnessing economic activity on multiple layer-2 networks. After the July announcement, Lido Finance has proceeded with its own deployment on Optimism and Arbitrum, which are layer-2 networks.

The benefit of Lido Liquid Staking

If the users interact with the liquid staking feature offered by Lido, they can avail of higher flexibility. The users do not have to bind their assets for a certain period of time while staking on Lido Finance’s liquidity staking pools.

Instead, the users have the freedom of withdrawing their funds from the particular staking pool at any given time. This is a utility that is hardly offered by any other network and is going to be huge traction for the investment community.

Lido Finance Staking to Bring in Institutional Investments

Alesia Haas, the chief financial officer at Coinbase had previously commented about the significance of a non-binding staking pool.

Haas stated that the cryptocurrency liquid staking feature requires institutional investments in order to thrive and rise to another level. Therefore, it is important that something is done to the current staking process.

She added that in the present time, the vast majority of staking pools bind the investors’ assets for a communicated time period. The investors cannot withdraw such funds until the staking pool has ended its duration.

This particular feature has been a huge no from the institutional investors’ end. They do not want to have their funds bounded just for the sake of generating returns.

This is where Lido Finance’s new liquid staking feature comes in offering its benefits.

Lido Finance has formed a Bridge

To ensure that the investors are offered fast, uninterrupted, and feeless services, Lido Finance has formed bridges between the two networks. The bridges would see the transactions take place via Wrapped Stake Ether (wstETH) token, which is powered by Lido.

Lido Finance has also announced that the investors who participate in the new staking program would be eligible to receive a portion of the 150,000 Lido DAO (LDO) on a monthly basis.