- BNB chain users are now enabled to employ Lido’s wrapped staked Ether (wstETH) across various DeFi protocols, courtesy of LayerZero integration.
- This integration renders Lido’s wstETH tokens compatible with the BNB chain, broadening their utility across native DeFi protocols.
In a notable development for users of the BNB chain, the integration with LayerZero now facilitates the utilization of Lido’s wrapped staked Ether (wstETH) across an array of decentralized finance (DeFi) protocols. This innovation carves a pathway for enhanced interoperability and utility within the blockchain network.
Unwrapping the Potential: Lido Meets BNB Chain
Liquid staking has increasingly become a pivotal aspect of the blockchain ecosystem, with Lido standing out as a major protocol amassing the highest Total Value Locked (TVL). For users staking Ethereum (ETH) tokens via Lido, the platform offers staked Ether (stETH), permitting participation in the rewards of staking while circumventing the restrictions of a lock-in period. However, a challenge has been the incompatibility of stETH tokens across various blockchain chains.
Addressing this issue, Lido introduces the wrapped staked Ether (wstETH) to the BNB chain through the LayerZero bridging infrastructure protocol. This strategic move ensures that the BNB community can seamlessly interact with and leverage the wstETH tokens within native DeFi protocols of the BNB ecosystem.
The move is supported by the statistics, with data from Oct. 24 indicating that the BNB chain boasted over a million daily active addresses, underscoring the extensive reach and engagement within the network.
Furthermore, DeFi projects operating on the BNB chain are now presented with the opportunity to integrate wstETH into their array of services. The BNB chain core team expressed their enthusiasm about this integration, highlighting the potential for enhanced accessibility, decentralization, and a smoother DeFi experience for users.
Despite this positive stride, it is noteworthy to mention a setback faced by BNB chain users in August. The leading NFT marketplace, OpenSea, decided to discontinue support for NFT transactions on the BNB chain, citing the need to align resources with the most promising efforts and indicating that the costs of supporting BNB chain outweighed the potential impact.