Linea To Launch Native Yield In Coming Months, Enabling Automatic Cross-Chain ETH Staking Via Lido V3
In Brief
Linea plans to launch Native Yield, a system that automatically stakes bridged ETH on Ethereum via Lido v3 to generate sustainable rewards, support liquidity, reduce ETH supply through transaction fee burns, and enhance its Layer 2 ecosystem’s capital efficiency and value.
Ethereum Layer 2 network Linea stated that it plans to introduce Native Yield in the near future. Under this approach, ETH transferred to Linea will, after launch, be staked on the Ethereum mainnet via Lido v3, a widely recognized decentralized staking protocol. The rewards from this staking process will be directed back into the Linea ecosystem, supporting liquidity initiatives and enhancing overall yield generation.
This arrangement ensures that ETH bridged to the network automatically accrues staking rewards from Ethereum, with those rewards allocated to liquidity providers, who benefit from both staking income and DeFi-based returns. The process requires no extra actions, introduces no custody-related risks, and avoids additional smart contract complexities. The bridging process remains unchanged, with users receiving ETH on Linea as before, and withdrawals can be made instantly through a built-in liquidity buffer, with optional liquid staking token withdrawals as a backup. The system is designed with non-custodial architecture, permissionless withdrawals, and trust-minimizing safeguards, ensuring that no external entity can restrict access or take possession of assets. All rewards originate solely from Ethereum staking, excluding lending activities to eliminate borrower risk or rehypothecation.
For institutional participants, Native Yield delivers returns on ETH that are adjusted for risk, supported by transparent operations, robust security measures, and detailed yield modeling. This enables ETH treasury holdings to be allocated to Linea with assurance that the assets will be utilized productively, generating yield, supporting DeFi activity, and contributing to Ethereum’s overall economic expansion. For liquidity providers across the spectrum, Native Yield changes the conventional approach to yield farming by removing the need to pursue rewards across multiple networks or to anticipate market downturns. ETH bridged to Linea continuously earns staking rewards directly from Ethereum while simultaneously powering DeFi engagement. The model is designed to be composable, sustainable, and in alignment with Ethereum’s long-term objectives.
Linea’s Native Yield Boosts ETH Productivity While Driving Layer 2’s First Large-Scale Burn Mechanism
Linea is designed to complement Ethereum rather than compete with it, extending its capabilities while maintaining alignment with its core principles. Through Native Yield, ETH is transformed from idle capital into an income-generating asset, and the protocol’s policy of burning 20% of all net transaction fees in ETH represents the first large-scale burn mechanism implemented by a Layer 2. This process reduces overall ETH supply, supporting its deflationary characteristics and reinforcing its position as a scarce digital asset.
As activity on Linea grows, increased ETH staking generates greater rewards and more liquidity incentives, higher trading volumes lead to additional fee collection and further ETH burns, and expanded capital inflows strengthen the ecosystem while enhancing ETH’s value. This creates a reinforcing cycle that benefits Ethereum at each stage. By enhancing ETH capital efficiency, bolstering Ethereum’s economic base, and preserving full EVM compatibility and security, Linea establishes a highly Ethereum-focused and capital-efficient Layer 2 environment, with Native Yield further enhancing its appeal upon launch.
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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.
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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.
