Lido's stETH Joins wstETH on OP Mainnet
Lido’s staked ETH (stETH) is now available for use on OP Mainnet
Lido’s stETH is now available on OP Mainnet, allowing users to benefit from direct, daily staking reward rebases and an unmatched bridging experience to access a number of new multichain benefits for stETH.
This represents the first deployment of Lido’s stETH on an L2, with stETH joining the already deployed wstETH as part of Lido’s Multichain strategy - a significant step towards a broader adoption of stETH across multichain ecosystems.
To bridge your stETH to OP Mainnet, follow the steps outlined here: help.lido.fi/en/articles/6579546-guide-bridging-to-op-mainnet.
What is Lido’s stETH?
Lido’s stETH is a rebasable utility token representing your share of ETH staked through Lido. Contrary to wstETH, stETH provides holders with direct ETH staking rewards reflected through a daily supply rebase, which sees your supply of stETH increase as staking rewards come in.
For more information on stETH, check out the article here: 'What is Lido's stETH'
What is OP Mainnet?
OP Mainnet is an EVM-compatible L2 built around a high execution speed, low transaction fees and the security of the Ethereum network, developed with a vision to help scale Ethereum. On OP Mainnet, users can benefit from a plethora of unique DeFi integrations through which to make use of their stETH.
For more information on Optimism and the OP Mainnet, visit optimism.io.
Motivation For Deploying stETH On OP Mainnet
Lido's wrapped stETH (wstETH) token has already been successfully integrated across various multichain ecosystems, including Arbitrum, OP Mainnet, Base, Scroll, ZKSync, Linea, BNB and others.
The deployment of wstETH provides a simplified experience for DeFi integrations through the straightforward value-accruing token, as opposed to through the daily rebasing of stETH.
Beyond just updating an account’s balance in the wallet, having rebaseable stETH on a multichain ecosystem works to unlock some of the following use cases:
- Staking/withdrawal requests originating from L2s with accuracy accounting for the stETH rebases that occurred during the bridging period.
- Performing gas payments in stETH with amounts corresponding to ether on rollups that opted in to support token gas payments (e.g. following the Account Abstraction).
- Cross-domain stETH deposits/withdrawals (L1 and L2s) for CEXes, custodians, and service providers to support L2s directly (DeFi interactions, deposits/withdrawals), as they can charge fees with each rebase while users still see their balance changing each day.
It is important to clarify that users are not required to unwrap their wstETH to stETH to realise the benefits of Lido's staked ETH on Optimism. Whether you are holding stETH or wstETH, you will continue to benefit from ETH staking rewards, faster execution speeds and lower fees.
Should you choose to unwrap your wstETH to stETH, keep in mind that this can be done directly on OP Mainnet using Lido's wrap widget.
The deployment of stETH on OP Mainnet represents an important step in the strategy of the Lido 'Network Expansion Workgroup' outlined in the document below.
Lido
What’s Next?
In the coming weeks keep an eye on the Lido Twitter to stay up to date with new DeFi integrations on OP Mainnet. Alternatively, check out the Lido DeFi Ecosystem hub for an overview of all current OP Mainnet integrations.
This deployment of stETH on OP Mainnet represents the first deployment of Lido’s rebasable stETH on an L2, providing users with an exciting opportunity to benefit from direct, daily staking rewards on an L2. In the future, expect for stETH to be deployed across a number of new L2s to further enhance the utility and relevancy of stETH.