Lido Finance integrates stETH into BNB Chain, marking its first cross-chain move.
The integration uses Axelar and Wormhole to bridge $23 billion in TVL to BNB.
Lido remains a leading DeFi protocol with $25.94 billion TVL and one million validators.
In a landmark decision, the Lido Finance community has voted to integrate its stETH (Staked Ethereum) into the BNB Chain. This move, finalized on August 9 through an on-chain vote by the Lido decentralized autonomous organization (DAO), marks the first time Lido has connected to a layer-1 blockchain outside of the Ethereum ecosystem.
The approved integration will utilize Axelar and Wormhole as the canonical solutions to bridge stETH to the BNB Chain.
Lido seeking to expand its utility within DeFi
This significant development allows Lido’s total value locked (TVL) to interact with one of the top five chains by TVL, expanding its reach and utility in the decentralized finance (DeFi) sector.
Lido Finance remains a dominant player in the Ethereum staking market, holding a substantial 28.2% share of net ETH deposits.
Despite a slight dip earlier in the year, Lido’s position as a leading staking platform is reinforced by its extensive validator network, which reached one million in April 2024. This growth underscores the platform’s vital role in the DeFi ecosystem and its impact on staking services.
The DeFi landscape has seen significant contributions from liquid staking protocols like Lido. Unlike traditional staking, which locks funds for a set period, liquid staking enables users to earn yields while retaining the flexibility to move or trade their staked assets.
For Lido, this process involves depositing ETH to receive stETH, a token that accrues interest and can be redeemed at an approximate 1:1 ratio with the underlying asset.
According to DefiLlama data, Lido’s liquid staking protocol commands a remarkable $26.227 billion of the total $83.782 billion in the DeFi ecosystem, solidifying its position as the largest DeFi protocol. This integration into the BNB Chain is expected to further enhance Lido’s influence and operational scope within the DeFi space.
Be the first to comment