Lido’s staked ETH (stETH) has made its debut on the OP Mainnet, marking a significant milestone in Lido’s multichain strategy. This deployment allows users to experience direct, daily staking reward rebases and enjoy a seamless bridging experience that opens up a variety of new multichain benefits for stETH.
This development represents the first deployment of Lido’s stETH on a Layer 2 (L2) network, joining the already integrated wrapped stETH (wstETH) as part of Lido’s ongoing efforts to expand its presence across multichain ecosystems. The project has been announced in the blog post linked here.
Understanding Lido’s stETH and OP Mainnet
Lido’s stETH is a rebasable utility token that represents a user’s share of ETH staked through Lido. Unlike wstETH, stETH offers holders direct ETH staking rewards, which are reflected through a daily supply rebase. This means that the supply of stETH in a user’s wallet increases as staking rewards are accumulated.
OP Mainnet, an EVM-compatible Layer 2 network, is designed to enhance the scalability of Ethereum by offering high execution speeds, low transaction fees, and robust security. On OP Mainnet, users can access a wide range of unique DeFi integrations to leverage their stETH.
Motivation for Deploying stETH on OP Mainnet
Lido’s wrapped stETH (wstETH) has already been successfully deployed across various multichain ecosystems, including Arbitrum, Base, Scroll, ZKSync, Linea, BNB, and others. The deployment of wstETH simplifies DeFi integrations by providing a straightforward value-accruing token, as opposed to the daily rebasing mechanism of stETH.
Introducing rebaseable stETH on OP Mainnet unlocks several use cases, enhancing the utility of Lido’s staked ETH. Users holding either stETH or wstETH can benefit from ETH staking rewards, faster execution speeds, and lower fees without needing to unwrap their tokens. However, if users choose to unwrap wstETH to stETH, they can do so directly on OP Mainnet using Lido’s wrap widget.
This deployment is a crucial step in the strategy outlined by Lido’s ‘Network Expansion Workgroup,’ aiming to broaden the adoption of stETH across L2 networks. In the coming weeks, users can expect new DeFi integrations on OP Mainnet, further enhancing the utility and relevance of stETH.
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