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Lido Continues Expansion on Layer2 with wstETH Deployment on Polygon

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On March 10, Lido, the liquidity pledge agreement, announced that wstETH had been deployed on Polygon. This is the third step of the expansion plan of \”Lido on

Lido Continues Expansion on Layer2 with wstETH Deployment on Polygon

On March 10, Lido, the liquidity pledge agreement, announced that wstETH had been deployed on Polygon. This is the third step of the expansion plan of “Lido on L2”. Polygon has become the third Layer2 network supporting Lido Ethereum’s liquid mortgage derivatives after Arbitrum and Optimism.

Lido has deployed wstETH on Polygon

Analysis based on this information:


On March 10, Lido, a liquidity pledge agreement, announced the successful deployment of wstETH on Polygon. This deployment marks the third step in the expansion strategy of “Lido on Layer2.” Polygon has become the third Layer2 network that supports Lido Ethereum’s liquid mortgage derivatives. Arbitrum and Optimism were the previous two networks to support Lido’s Ethereum liquidity.

Lido’s expansion on Layer2 is a strategic move aimed at providing Ethereum-based protocols with various Layer2 options to increase transaction processing speed while maintaining security and network stability. Blockchain networks like Ethereum are designed to have a single layer with a single-block producing network. This makes the blockchain slower as demand for the network grows. To tackle this challenge, various Layer2 solutions are in place to improve processing speed and accommodate the increasing demand. Each network’s Layer2 solution is unique, and so the Lido team has opted to expand on all three major Layer2 solutions to provide universal access for its users.

In the Layer2 networks, Lido Ethereum’s wstETH has the same functionality as in the Ethereum mainnet. It provides users with liquid mortgage derivatives that have a 1:1 ratio with Ethereum. Users who deposit Ethereum into Lido receive wstETH in exchange, which can be traded like Ethereum. The only difference is that wstETH is more efficient on a Layer2 network than on the Ethereum mainnet. It helps users save on gas fees and improve transaction times without negatively affecting transactions’ security or stability.

Polygon is a more efficient network when compared to Ethereum mainnet, with lower gas fees and faster transaction processing speed. Lido’s deployment on Polygon means users can now use wstETH on Polygon for faster and cheaper transactions while maintaining security and network stability. Furthermore, Polygon’s capacity for composability and Ethereum interoperability will enable Ethereum-based protocols to seamlessly integrate with great speed and efficiency.

In conclusion, this recent deployment of wstETH on Polygon marks Lido’s continued expansion on Layer2 solutions. The move aims to provide Lido users with faster and cheaper transaction processing while maintaining security and network stability. The Lido team’s strategy to expand on all major Layer2 solutions allows it to provide universal access to its users while maintaining a high level of security.

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