Lido Finance and Optimism have launched a new incentive program to encourage liquid stakers to migrate to the layer-2 network. The LidoOnLayer2 initiative aims to enhance liquidity for Lido's staked Ethereum (stETH) product on all layer-2 solutions. Optimism has granted Lido 1 million $OP tokens for the program, which will reward users who stake their Ethereum with Lido, move their staked Ethereum to Optimism, and provide liquidity for selected token pairs. The incentive program will run for six months.
Lido Finance is the largest liquid staking platform, enabling users to deposit proof-of-stake (PoS) tokens and earn rewards without needing the 32 $ETH required to start staking on Ethereum. Instead, users can deposit any amount into Lido and start earning.
The new incentive program offers additional rewards to Lido users who move their stETH to the layer-2 network. Users interested in earning the extra OP yield can access "priority pairs," including wstETH-ETH and other stablecoin pools. The wstETH asset is more compatible and easier to integrate with crypto protocols, making it accessible to users who don't want to pay or can't afford mainnet fees.
Liquid Staking Token
Liquid Staking Derivatives (LSD)