Ethereum bridge Linea sets to automatically stake ETH through Lido for native return yields
Linea, an Ethereum Layer 2 built by Consensys, is set to launch a new feature called Native Yield in the coming months. This innovative feature aims to address issues in Decentralised Finance (DeFi), such as inconsistent rewards and idle ETH, by automatically staking users' bridged ETH to the network using Lido v3.
When ETH is bridged to Linea, it is staked without any user action, earning Ethereum's native proof-of-stake rewards. These staking rewards are then distributed as incentives to liquidity providers within Linea's DeFi ecosystem, turning idle bridged ETH into a productive asset generating sustainable returns.
The rewards for Native Yield come directly from Ethereum's own staking system, and they are stable, low-risk, and align with Ethereum's long-term vision. This feature does not require any extra steps or manual effort from users, making it an attractive option for those looking to earn staking rewards without the hassle.
Linea believes the current DeFi environment is fraught with short-term yield chasing and unsustainable incentive structures. Native Yield aims to make capital productive from the moment it's bridged, allowing bridged ETH to earn native staking yield while still being usable within the Layer 2 network.
The benefits for Ethereum users in DeFi through Native Yield include capital efficiency, sustainable and long-term incentives, improved DeFi experience, and maintained security guarantees. ETH on Linea no longer sits idle but earns predictable, competitive staking returns, increasing overall yield without extra complexity or custody risk.
Moreover, by incentivizing liquidity provision with native ETH staking rewards, Linea aims for tighter trade execution, more reliable borrowing, and scalable DeFi services on its Layer 2. As a Layer 2 rollup, Linea preserves Ethereum’s security properties while offering decentralized, permissionless access to staking rewards for bridged assets.
Linea is committed to Ethereum and does not aim to compete with it; instead, it aims to extend it. The statement emphasizes that Linea is an extension of Ethereum, not a competitor. Linea will also burn 20% of all net transaction fees, reinforcing Ethereum's deflationary supply model.
In summary, Linea Native Yield makes bridged ETH productive by seamlessly integrating Ethereum staking rewards into its DeFi ecosystem, offering users a secure, efficient way to earn sustainable staking yield alongside DeFi incentives without added custody or user action.
Staking ETH on Linea's DeFi ecosystem automatically through Native Yield generates sustainable returns, as the rewards are derived from Ethereum's own proof-of-stake system. Furthermore, this feature enhances the overall DeFi experience for Ethereum users by offering tighter trade execution, reliable borrowing, and scalable services, all while preserving Ethereum's security properties through its Layer 2 rollup.
