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Lido has voted to approve Axelar and Wormhole’s joint cross-chain solution to bring wstETH to BNB Chain

BlockBeatsBlockBeats2024/08/13 08:09
By:BlockBeats

Axelar will work with Wormhole as the wstETH cross-chain bridge on BNB Chain.


Lido, a leading liquidity staking service provider, completed an on-chain vote in its community on August 9, approving the joint solution of Axelar and Wormhole as a cross-chain bridge for wstETH on BNB Chain. Lido's decision not only brings wstETH liquidity to BNB Chain, but will also conduct necessary testing and user interface updates to ensure the smoothness of the entire cross-chain bridge process.


Lido uses on-chain voting to allow community members to participate in major decisions, which is not only a practice of the concept of decentralized governance, but also a respect for the wishes of community members. The approval of the joint proposal of Axelar and Wormhole, as well as the final determination of the cross-chain bridge, demonstrate the active participation and efficient decision-making of the Lido community in the governance process.


It is worth noting that this is also the first time that Lido has introduced its cross-chain bridge to the non-EVM L2. Currently, Lido plays an important role in the Ethereum ecosystem. According to DefiLlama data, its TVL has reached approximately US$26 billion.



Although Lido's share of the staking Ethereum market fell below 30% in early 2024, the staking platform is still a major player in the market by a wide margin, accounting for about 29% of the Ethereum staking market, according to Week in Ethereum News. BNB Chain, as a major hub in the DeFi field, ranks in the top five in TVL. The addition of Lido will undoubtedly further enhance BNB Chain's competitiveness and attractiveness in the DeFi ecosystem. Lido also reached one million validator nodes in April 2024, driving the revival of DeFi and consolidating the staking track as the largest track in DeFi.



At the same time, this cooperation is not the first cooperation between Lido and Axelar. Previously, Axelar has successfully helped Lido introduce wstETH into the Cosmos ecosystem. This cooperation again not only deepens the cooperative relationship between the two parties, but also further expands Lido's layout in the cross-chain field.


The Importance of Liquidity Staking Protocol


While traditional staking services require funds to be locked for a specific period of time, preventing these funds from being traded or moved, liquidity staking protocols allow investors to collect returns while staking their crypto assets, while allowing users to move these assets freely.


In the specific design mechanism of Lido Finance, this is achieved by users depositing the underlying assets into the liquidity pledge protocol, where ETH is the underlying asset of stETH. Once deposited, the corresponding stETH token will be generated, which will accumulate interest over time and can be sold or exchanged for the underlying asset at a ratio of approximately 1:1.


Axelar is not only a cross-chain bridge, but also provides an open technology stack that allows top DeFi applications (such as Aave, PancakeSwap and Venus, etc.) to use this technology stack to build seamless connections through integration.


This milestone expansion not only creatively integrates the two major Web3 interoperability networks of Axelar and Wormhole, but also marks the first time that Lido has achieved a secure connection with an L1 blockchain outside the Ethereum ecosystem-previously, cross-chain bridging was limited to Ethereum extensions. In the process, Axelar and Wormhole, two teams that are usually regarded as competitors, responded to the advice of Lido DAO and worked together to develop this joint solution. The newly constructed standard bridge not only avoids dependence on a single supplier, but also provides a more solid security guarantee for wstETH by integrating the communication and verification mechanisms of the two networks.


Georgios Vlachos, director of the Axelar Foundation and co-founder of the Axelar Protocol, said, "We are rapidly approaching an era where innovation in the blockchain ecosystem is open to developers in any other ecosystem. As the cornerstone of building a better Internet and global financial system, bringing liquid pledged ETH to BNB Chain accelerates the arrival of that era. I am proud to see that this process is achieved through the cooperation of two interoperability leaders, which is led by the decentralization and open governance of Lido DAO."


Dan Reecer, co-founder of the Wormhole Foundation, subsequently stated, "This collaboration marks the industry's first collaboration between Wormhole and Axelar on a joint cross-chain connection, starting with wstETH, one of the most systemically important assets in the crypto space. After conceiving of this solution in the Lido forum, it is incredible to see it become a reality, highlighting the power of community-driven innovation and the commitment to properly follow the on-chain governance process in an ethical and thoughtful manner."


About Lido


Lido is a multi-chain staking solution that provides a simple and secure way to earn interest on digital assets. It is committed to democratizing staking, allowing users to stake their digital assets without locking or maintaining hardware, and enabling users to use their staked assets, providing integration with decentralized applications across multiple blockchain ecosystems.


About Axelar


Axelar is a Web3 interoperability platform that allows top DeFi applications to achieve seamless cross-chain links based on an open technology stack and cover all blockchain users, while supporting open, scalable and secure cross-chain smart contracts.


This article comes from a contribution and does not represent the views of BlockBeats


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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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