Layer 2 protocols run a separate blockchain on top of the mainnet, providing a secondary framework where transactions can take place. Once the transactions are processed, the data is sent back to the layer 1 blockchain, where it is stored in the blockchain ledger. That way layer 2s help alleviate network congestion on the mainnet.
Lido Finance Will Soon Offer Staked Ether on Layer 2 Networks, Proposes to Sell LDO for DAI
