Lido has deployed wstETH 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.

Interpretation of this information:

Lido, the liquidity pledge agreement, has recently declared that it has integrated wstETH onto Polygon. This integration has become the third phase of the expansion plan of Lido on L2. Polygon has emerged as the third Layer2 network extending support to Lido Ethereum’s liquid mortgage derivatives after Optimism and Arbitrum, with wstETH being the principal collateral in the Polygon Ecosystem.

As the Ethereum network begins to strain under network congestion and high gas fees, Ethereum Layer2’s are trying to deal with this challenge by providing scalability, speed, and low-cost transactions. By integrating with Polygon, Lido will be able to offer its liquidity solutions and decentralization to a much more significant number of users at much lower costs without making any changes to the system as the Lido protocol already uses the ERC20 standard. This would benefit the users in several ways by providing faster and better access to staking assets.

Polygon has been a popular network for DeFi protocols looking to improve their scalability options. Due to its focus on gasless transactions, it has seen significant adoption from several Ethereum-based projects. The integration of wstETH onto Polygon is a strategic move by Lido, as wstETH is the vital collateral for staking on the Ethereum-based network.

The decision to integrate with more networks is a significant part of Lido’s expansion strategy. Through this expansion, Lido aims to provide low-cost, easily accessible, and secure liquidity solutions to users. This is critical as it provides the platform a more comprehensive reach and attracts a broader base of users. The expansion plan allows Lido to offer its services to users on many networks, allowing for more diverse use cases and enhancing the platform’s utility value.

To sum up, Lido’s integration of wstETH onto Polygon is another strategic move in expanding its L2 network offerings. With the scalability and speed that Polygon offers and the low gas transaction fees, this integration will benefit a more significant number of users. Additionally, this move helps Lido to provide liquidity solutions to users across several networks, diversifying its use case and making it more valuable to the users.