The current mirror ratio
I_o/I_REF = ((W/L)_1 / (W/L)_2) * (1 + lambda*V_DS1)*(1 + lambda * V_DS2)
can also be expressed as
I_o/I_REF = ((W/L)_1 / (W/L)_2) * (1 + (V_o - V_GS)/V_A),
which implies that
(1 + lambda*V_DS1)*(1 + lambda * V_DS2) = (1 + (V_o - V_GS)/V_A).
Can someone explain to me why?
(You can see the identity on page 5 of the attached PDF or on p. 529 of Microelectronic Circuits)