The problem: a broken DeFi incentive model

DeFi was meant to democratize access to capital and enable permissionless finance for all. But over time, incentives have fragmented and degraded. Hunting for high APRs across chains has become a cycle of short-term gains and hidden risks. Points fly and vanish, liquidity migrates with every yield farm. This dynamic only favors farmers and sophisticated users.

For ETH holders and DeFi participants, this environment is no longer just inefficient; it’s unsustainable. At Linea, we’re taking steps to fix the model.

The solution: Native Yield on Linea

Starting in a few months, ETH bridged to Linea will be automatically staked on Ethereum mainnet through Lido v3, one of the most trusted and decentralized staking solutions in the space. The staking rewards generated will flow back into the Linea ecosystem, funding liquidity programs and amplifying yield.

This means:

• Bridged ETH earns Ethereum-native staking yield automatically

• Staking yield is distributed to liquidity providers, who receive dual returns: staking rewards + DeFi yield

• No additional steps, custody risks, or smart contract friction

• The bridging experience stays the same; you receive ETH on Linea, just as you always have

• Your ETH can always be withdrawn instantly, thanks to a protocol-level liquidity buffer and optional LST withdrawals as a fallback

• Your funds are secure. Native Yield is built with trust-minimization, permissionless withdrawal guarantees, and fully non-custodial infrastructure. No third party can block access or seize funds. Staking rewards are sourced only from Ethereum-native staking, not lending, so there's no borrower risk or rehypothecation.

Read the full Litepaper on Native Yield security and design for a deeper breakdown.

“With Native Yield, ETH deposited to Linea transforms from passive collateral into a productive asset, generating sustainable returns, deepening onchain liquidity, and supporting broader ecosystem growth. With this feature, Linea offers the most capital-efficient L2 environment on Ethereum” — Declan Fox, Head of Linea.

The advantage: why Linea is the best place for your ETH

For institutions

Native Yield offers risk-adjusted returns on ETH with institutional-grade transparency, security, and yield modeling. ETH treasuries can now deploy capital onto Linea with confidence, knowing it will not sit idle, but actively contribute to yield generation, DeFi growth, and Ethereum’s broader economic growth.

For liquidity providers of all sizes

Native Yield rewrites the rules of yield farming. No more chasing points across chains. No more worrying about when the music stops. Every ETH you bridge to Linea works for you, earning native staking rewards from Ethereum itself while fueling your DeFi activity.

It’s yield that’s composable. Sustainable. And aligned with Ethereum’s long-term vision.

When Native Yield meets ETH burn, Ethereum wins

Linea is not here to compete with Ethereum; it’s built to extend it.

Native Yield turns ETH from idle capital into a productive asset, while Linea’s commitment to burn 20% of all net transaction fees in ETH marks the first large-scale ETH burn mechanism by any L2. This directly reduces ETH supply, reinforcing its deflationary design and positioning it even more clearly as ultra-sound money.

As more users bridge to Linea and participate in DeFi:

• More ETH staked → More rewards generated → More liquidity incentives

• More trading occurs → More fees collected → More ETH is burned

• More capital flows in → Stronger Linea ecosystem → Higher value for ETH

It’s a virtuous cycle where Ethereum wins at every turn.

Ethereum gives us programmable money. Linea optimizes its productivity. By making ETH capital more productive, strengthening Ethereum’s economic foundation, and ensuring full EVM compatibility and security, Linea offers the most Ethereum-centric and capital-efficient environment for ETH on any Layer 2. And with Native Yield going live soon, it is also the most rewarding.

We’re building somETHing powerful. 

Learn more about Linea’s Native Yield here.