Lido Hits Pause On wstETH Deposits From Ethereum To Optimism Until October 14
In Brief
Lido pauses deposits of stETH from Ethereum to Optimism Mainnet as part of an upgrade aimed at introducing rebasable stETH to Optimism.
Liquid staking protocol Lido announced that deposits of stETH from Ethereum to the Optimism Mainnet are currently paused. This pause is part of an upgrade aimed at introducing rebasable stETH to Optimism. Operations are expected to resume around October 14th, once the upgrade is completed.
The upgrade will enable rebasable stETH on Optimism, allowing users to receive direct, daily staking rewards. The implementation of rebasable stETH on Layer 2 is part of LIP-22, which was introduced in March. This upgrade offers several unique benefits and use cases, including eliminating the need to wrap stETH into wstETH, thereby enhancing the overall bridging experience.
The upgrade unlocks various other use cases, including the ability to make gas payments using stETH in amounts equivalent to ETH on rollups that have chosen to support token gas payments. Additionally, it facilitates cross-domain stETH deposits and withdrawals on both Layer 1 and Layer 2 networks. This enhancement will also enable centralized exchanges, custodians, and service providers to directly support Layer 2 networks, allowing them to charge fees with each rebase, while users will continue to see their balances updated daily, among other benefits.
Tentative Timeline For Deploying stETH On Optimism
According to the deployment timeline for stETH on Optimism, the pause on wstETH Ethereum to Optimism bridge deposits will be followed by the initiation of Aragon voting. The outcome of this vote will determine the next steps, including an objection phase and the conclusion of the overall voting process. If the vote passes, the execution of upgrades for Layer 2 bridge endpoints will take place, allowing for the resumption of Optimism bridge deposits and the removal of the emergency brakes that currently pause operations. After these changes, the first post-upgrade AccountingOracle report will be released, along with further announcements and the availability of new user interfaces.
Lido operates as a liquid staking platform for both Ethereum and Polygon, offering derivative token contracts for liquid staking alongside additional smart contract infrastructure that supports native token staking services. Users can stake ETH on the Ethereum network and ERC-20 MATIC tokens on the Polygon network through Lido’s smart contracts, receiving liquid staking derivative tokens in exchange. This setup allows users to maintain liquidity while participating in staking activities.
Disclaimer
In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.
About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
More articles
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
