Lido chose to support only wstETH – wrapped staked Ether – for several reasons, it claims. However, it only shared that wstETH offered “simplified bridge contracts and ease of integration, both with bridges and general DeFi space.” Hence, the offsetting part.Thus, came the extra support to handle the aforementioned integration: Optimism and Arbitrum. On 18 August, Lido Finance unveiled the next step as part of its expansion plan. The staking platform aimed for layer 2 networks mentioned here.
Following the six-month-long consistent decline in the total value locked within the DeFi ecosystem, July marked the beginning of new things as TVL across many protocols started to recover.But probably the biggest risk to Lido Finance at this point is confidence in the derivatives. One of the reasons why stETH has been making headlines lately is because it has lost its peg to ETH.At the time of writing, stETH was priced at $1,566, which can be considered at a 1.2% discount to ETH .