Lido’s wstETH has been merged with the OFT standard and will go live on BNB Chain tomorrow, according to a statement.
As a result, users will be able to smoothly transfer their wstETH between Ethereum and Avalanche, BNB Chain, and Scroll.
The Main Insights from LIDO on the BNB Chain
This integration will enable LIDO’s native token transfer between networks, eliminating wrapped asset risks. So, this will accelerate growth in the BNB Chain DeFi ecosystem and promote horizontal composability between other networks.
Lido is the top DeFi project on Ethereum with approximately $14 Billion in TVL. wstETH can now begin to permeate these three networks: BNB Chain, Scroll, and Avalanche. This means that BNB Chain users can now use wstETH in DeFi.
So, BNB Chain protocols will be able to integrate wstETH and tap into one of the largest markets in DeFi.
More About wstETH and Lido
Lido is a decentralized finance (DeFi) protocol that provides a solution for staking Ethereum (ETH) on the Ethereum 2.0 Beacon Chain while maintaining liquidity for staked assets. When Ethereum 2.0 transitioned to a proof-of-stake (PoS) consensus mechanism, users could now stake their ETH to secure the network and earn rewards.
However, staked ETH is locked and illiquid, meaning it cannot be easily traded or used in other DeFi applications.
— Lido (@LidoFinance) October 24, 2023
Lido solves this problem by allowing users to stake their ETH through the Lido protocol. In return, they receive stETH, a liquid representation of their staked ETH that can be traded and used in DeFi applications.
Lido aims to make it easier for users to participate in Ethereum 2.0 staking while maintaining access to the liquidity of their assets.
More About LayerZero
LayerZero lets users send messages between blockchains using LayerZero’s User Application (UA). With this, any contract that uses LayerZero to transmit and receive messages between blockchains is referred to as a UA.
LayerZero is live on OpBNB! pic.twitter.com/FX9Twbs0z0
— LayerZero Labs (@LayerZero_Labs) October 12, 2023
It is currently compatible with Ethereum, BNB Chain, Avalanche, Aptos, Polygon, Arbitrum, Optimism, and Fantom, among other cryptocurrencies.