• Linea will auto-stake bridged ETH using Lido V3’s stVaults.
• Users earn passive ETH staking rewards without active input.
• Launch set for October 2025 with strong security safeguards.

In a move that could reshape yield generation on Ethereum Layer 2s, Linea, an Ethereum scaling network developed by Consensys, has unveiled plans to integrate Lido V3’s staking infrastructure.

The new feature, called Native Yield, will automatically stake ETH that users bridge to Linea, allowing DeFi participants to earn Ethereum-native staking rewards without active participation.

Notably, the integration marks a significant departure from traditional incentive models in DeFi, offering a streamlined and sustainable method for yield generation that bypasses the need for token emissions or high-risk lending protocols.

While the official launch is scheduled for October 2025, the announcement has already sparked conversations about its potential impact on Ethereum’s broader ecosystem.

Turning idle Ethereum (ETH) into active DeFi yield

At the core of Linea’s strategy is the belief that ETH capital sitting idle on Layer 2 networks is a missed opportunity.

Currently, ETH bridged to most L2s must be manually deployed in DeFi protocols to generate returns.

However, with Native Yield, Linea aims to flip that model by auto-staking bridged ETH via Lido V3’s smart contracts.

This system not only simplifies staking for users but also addresses a broader issue that Linea says is plaguing DeFi: incentive fragmentation.

According to Linea, the current model of chasing high APRs across multiple chains has become unsustainable, with users constantly migrating liquidity for short-term gains.

Native Yield seeks to create a more stable environment by generating sustainable 3–5% staking rewards derived from Ethereum’s proof-of-stake consensus.

Built with Lido V3’s stVaults and safeguards

The technical foundation of this system lies in Lido V3’s stVaults—non-custodial smart contracts designed for trustless staking.

These contracts are operated by Node Operators selected by Linea, and withdrawal keys are held in secure contracts, not by any centralised party.

This design ensures that staking is transparent, permissionless, and secure.

To maintain capital efficiency while ensuring smooth user withdrawals, Linea will implement a Liquidity Buffer.

This buffer consists of unstaked ETH to accommodate high withdrawal demand. In periods where demand exceeds the buffer, users may receive stETH, which can be traded on secondary markets.

This design minimises friction while keeping user funds productive.

Additionally, the system incorporates EIP-7002, a mechanism that allows forced unstaking in the event of governance failures or security risks.

If required, the system can disengage from DAO control using an “escape hatch” mechanism, providing an extra layer of protection for users.

To manage the auto-staking process, Linea has introduced a role called the Native Yield Operator.

This operator is responsible for overseeing the staking flows and ensuring the system stays balanced.

However, governance is not centralised. If liquidity thresholds are breached or performance falters, users themselves can initiate rebalancing actions or trigger withdrawals.

These built-in safeguards aim to make Linea’s staking ecosystem resilient to both operational challenges and governance attacks.

In a space where smart contract risks and centralised control remain key concerns, Linea’s architecture stands out for its proactive risk mitigation measures.

The road ahead

While many L2s rely on token incentives to attract capital, Linea is charting a different course.

By offering sustainable, Ethereum-native yields without the need for token emissions or temporary rewards, Linea believes it can attract long-term capital.

This shift could improve liquidity depth and trade execution, giving the network a competitive edge in the DeFi space.

Still, not everyone is convinced. Lido V3’s stVaults are relatively new and have yet to be tested at scale.

Some critics argue that more established alternatives, such as StakeWise V3 Vaults, may offer a safer route.

Nonetheless, Linea remains committed to its roadmap and has not indicated any changes ahead of its October launch.

Linea’s Native Yield feature is not just a technical upgrade—it is a strategic effort to redefine how Ethereum Layer 2s compete for liquidity.

By combining staking infrastructure, non-custodial design, and a clear governance framework, Linea is positioning itself as a secure, yield-generating hub for ETH.

If the system proves effective in attracting and retaining liquidity, Linea could establish itself as one of the most capital-efficient and Ethereum-aligned L2 networks.

As the October 2025 launch draws closer, all eyes will be on whether this bold approach can deliver both performance and trust at scale.

The controversial Dogechain project suffered a setback last week when Dogecoin’s (DOGE) founder Billy Markus refused the juicy $14 million promotional offer. However, the developers of Dogechain can be proud of their work, as the Layer-2 solution for (DOGE) has over $300 million of the top dog memecurrency bridged already.

+300 Million $DOGE experiencing true utility whilst bridged over on #Dogechain … Beautiful to see Check it out, #DOGE deposited is tracked on the bridge page: https://t.co/vqPuhARFCj pic.twitter.com/zrs5C65I1I

— Dogechain (Giving away a Tesla (NASDAQ:)) (@DogechainFamily) August 31, 2022

The Broad Spectrum of Utilization for DOGE

One of the main perks of the brand new Layer-2 solution is being able to use Elon Musk’s beloved canine coin for NFTs, dApps, DeFi, and blockchain games. In addition to these benefits, all users who bridged to Dogechain are able to get the $DC token airdropped in a two-tier system. For instance, the Early Shibes can get 3% of the total supply, while Loyal Shibes will split 9% of the total supply in 4 years.

Despite being denied by the founding developer Shibetoshi Nakamoto, the Dogechain project seems to be prospering. Right after reaching the $300 million of Dogecoin (DOGE) transferred, Dogechain announced that the $DC token is getting listed on Huobi crypto exchange. The DC/USDT pair is already live and users can make deposits from August 31st.

We are excited to congratulate$DC token listed on #Huobi We will work with @DogechainFamily to propel the prosperity of #Dogechain Ecosystem! #LFM #dogechainNFT Let’s crazy together https://t.co/FVR7pKKOzN

— DOGE.Meta (@DOGEMetaNFT) September 1, 2022

Moreover, another popular crypto exchange KuCoin announced a $DC token giveaway worth $500,000 of DC tokens and an AMA (ask me anything) online event with the developers behind the latest Layer-2 solution for Dogecoin (DOGE).

Dogechain (DC) Soars 135.5% in the First Week

The success of Dogechain’s governance token is evident in its skyrocketing price for the first week. At press time, Dogechain (DC) trades at $0.00286989, according to CoinGecko. Despite being down by 4.6% in the last 24 hours, this might change after Dogechain’s governance token got listed by both Huobi and KuCoin. On top of that, Onus crypto exchange just announced the addition of Dogechain (DC).

#ONUS New Listing: $DC@DogechainFamily supercharges Dogecoin to bring crypto applications like NFTs, games, and DeFi to the Dogecoin community.Trading pair #DC to #USDT or #VNDC on #ONUS. Details: https://t.co/mJDMfXQ4Lk#Cryptocurrencies pic.twitter.com/iYLxm5MPY9

— ONUS (@ONUSFinance) September 1, 2022

As for Elon Musk’s cherished Dogecoin (DOGE), the father of the memecoins is having a bloody red week. At press time, Dogecoin (DOGE) trades at $0.060, which marks an 11.1% deficit for the last 7 days. The fortnight has Dogecoin (DOGE) short of a quarter of its former price, while the yearly perspective is even worse – the popular memecoin dropped in value by 78.3%, according to CoinGecko.

On the Flipside

• Despite providing more utilization, Bridges have been at the center of attention in most crypto scams so far in 2022.
• Billy Markus turned down Dogechain’s sweet $14 million offer, claiming it would mean betrayal of the DOGE Army.
• There’s an official Layer-2 solution in the works. The Blue Pepper ETH-DOGE bridge is scheduled to launch by late 2022.

Why You Should Care

The popular memecoin has one of the fastest growing communities in crypto. Moreover, the constant upgrades like the C-Library update and the upcoming bridge powered by Blue Pepper can have a huge impact on Dogecoin’s (DOGE) market price and longevity as a crypto project.

Find out more about the upcoming ETH-DOGE bridge by Blue Pepper

Learn why Elon Musk is clinging on Tesla’s Dogecoin (DOGE) despite bear market

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