Lido Suspends wstETH Deposit from Ethereum to Optimism During Upgrade
2024-10-07
Bittime - Today, Lido announced it would temporarily suspend deposits wstETH from the Ethereum network to Optimism as a part of an ongoing upgrade until October 14, 2024.
Lido will also introduce rebasable stETH to Optimism, to provide immediate and daily staking rewards for users. Read this article to find out more!
Lido, Staking Platform
Lido is a platform that provides staking services for several blockchain networks, including Ethereum. Staking on Lido allows users to stake their assets and earn rewards without having to fully lock those assets.
One of the main tokens in the Lido ecosystem is stETH (Staked Ether), which represents Ether (ETH) that has been staked on the Ethereum network. StETH is usually used by users to still enjoy staking rewards while maintaining their liquidity.
However, with ongoing upgrades on the network Optimism, Lido will present a version of rebasable stETH, which allows users to earn immediate and daily staking rewards without the need to make manual claims.
Read Also: EIGEN Staking Withdrawal Time Shortened from 24 Days to 7 Days
Lido Suspends wstETH Deposit
Deposit wstETH from Ethereum to Optimism had to be temporarily suspended as Lido was integrating rebasable stETH to the Optimism network.
Rebasable stETH is a type of token that automatically adjusts its supply based on daily staking rewards, in contrast to wstETH which has a fixed tokenization model.
Users who want to transfer wstETH from Ethereum to Optimism will have to wait until the upgrade is complete.
Optimism, Ethereum Layer 2 Solution
Meanwhile, Optimism is one solution Layer 2 which is most popular on the Ethereum network, aiming to increase scalability and reduce transaction costs.
By using Optimism, users can make transactions at much lower costs and at higher speeds compared to direct transactions on the Ethereum network.
Rebasable stETH Profits
The rebasable stETH that will be introduced at Optimism brings several advantages to users, mainly related to efficiency and convenience.
With rebasable stETH, users no longer need to make manual claims to earn staking rewards.
Instead, these rewards will automatically accumulate daily in the form of adjustments to their stETH supply.
Therefore, users can continue to participate in staking without having to worry about losing liquidity or having to take additional steps to claim rewards.
Read Also: Starknet to Launch First Mainnet STRK Staking and Voting Features
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