Aave, a leading cryptocurrency protocol, recently published a new proposal outlining the incorporation of Lido’s wrapped stETH, wstETH, to its V3 deployment on layer 2 network (L2) Optimism.

Users of Lido Finance are rewarded with stETH tokens for staking their ETH on the liquid staking protocol. However, because stETH is a rebase token, a user’s stETH balance fluctuates as they collect staking rewards on a daily basis.

The Aave DeFi protocol community recently proposed adding Lido’s wrapped stETH (wstETH) to its V3 deployment on the Layer 2 network (L2) Optimism.

So far, its stETH Reserve on the V2 has been a success. This reserve, at $1.09 billion, contains USDC and ETH holdings of more than $1.08 billion and $1.03 billion, respectively, making it the highest reserve of any existing Aave deployment.

Aave acknowledged that the inclusion of wstETH in the Optimism Liquidity Pool would let developers to construct and deploy similar products on the L2 network.

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