LayerZero introduces omnichain token to move Lido's wstETH across Avalanche, BNB Chain and Scroll
Quick Take
- The blockchain interoperability protocol LayerZero will bridge Lido’s wstETH across four networks: Ethereum, Avalanche, BNB Chain and Scroll.
- The move will integrates wstETH into LayerZero’s omnichain fungible token (OFT) standard for easier cross-chain portability.
Interoperability protocol LayerZero has introduced the ability to move wrapped stETH token (wstETH) from the liquid staking protocol Lido Finance across Ethereum, Avalanche, BNB Chain and Scroll.
wstETH has also been integrated into LayerZero’s omnichain fungible token standard, or OFT standard, which aims to eschew wrapped asset risks in cross-chain native token transfers. OFT moves tokens through its decentralized communication protocol as opposed to minting and burning wrapped tokens.
The token has not been officially endorsed by Lido.
Expanded wstETH opportunities
LayerZero's cross-chain interoperability of wstETH hopes to bolster DeFi opportunities outside of Ethereum and into Avalanche, BNB and Scroll.
"ETH is a staple asset within Avalanche’s DeFi ecosystem and the ability to obtain staking yield through Lido's stETH and LayerZero’s OFT infrastructure helps to foster Avalanche’s LSD growth," said Luigi D’Onorio DeMeo, head of DeFi and developer relations at Ava Labs.
Lido maintains the most total value locked (TVL) among liquid staking protocols, according to The Block’s data dashboard. As of Oct. 25, Lido saw $15.85 billion value locked in liquid staking.
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