Linea + Lido: Bringing Native Yield to L2s
With Native Yield, @LineaBuild will be integrating Lido V3 stVault infrastructure to help power its sustainable, non-custodial DeFi engine, enabling all bridged ETH to automatically earn staking rewards.
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Linea Native Yield is a novel mechanism that channels Ethereum staking rewards from bridged ETH (L1 → L2) directly into Linea’s liquidity incentive program.
Through Native Yield, bridged ETH on Linea will automatically earn Ethereum-native staking rewards without altering the withdrawal or custody guarantees of the bridge.
Powered by Lido V3
Native Yield integrates Lido stVaults, a new modular and customisable staking infrastructure introduced in Lido V3.
The Linea use of stVaults is customized to stake bridged ETH and route rewards to Linea-side LPs & DeFi, whilst preserving trustless access & withdrawals.
With Native Yield, bridged ETH becomes yield-bearing infrastructure.
• All ETH deposited to Linea will be staked via a Linea-managed stVault
• Rewards are distributed throughout the Linea ecosystem
• Withdrawals are instant via a Liquidity Buffer or via fallback to stETH
Yield without friction.
Linea’s Native Yield is a revolutionary, first-of-its-kind Ethereum staking model.
• ETH earns L1-native yield
• Yield powers L2 liquidity
• Liquidity drives protocol activity & revenue
• Linea-based activity results in ETH burned, mimicking L1 fee mechanisms
A sustainable, Ethereum-aligned L2 incentive loop.
If you’re building Ethereum scaling infrastructure, or are using the Linea stack for your chain and considering Native Yield, and you’re curious about bringing stVaults to your protocol, get in touch with the Lido contributor team.
Check out the full Litepaper on Native Yield security and design for a deeper breakdown:
Linea and Lido V3: Bringing Native Yield to L2s
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