- Stader Labs implements Chainlink CCIP for secure, smooth cross-chain ETHx transfers on Ethereum and Arbitrum, improving the DeFi user experience.
- Chainlink CCIP’s decentralized oracles and risk management network ensure secure and future-proof cross-chain interoperability.
We are happy to report that Stader Labs has integrated Chainlink’s Cross-Chain Interoperability Protocol (CCIP) into its cross-chain staking functionalities, offering a major improvement. The Ethereum and Arbitrum mainnets are the primary locations for this upgrade, which aims to improve asset transfers security and user experience.
.@staderlabs_eth—a liquid staking protocol with $600M+ TVL—has integrated CCIP across @ethereum & @arbitrum to unlock cross-chain transfers of its liquid staking token ETHx.
Stader is also sponsoring the ETHx/ETH #Chainlink Price Feed on Ethereum.
— Chainlink (@chainlink) April 16, 2024
Secure and Smooth Cross-Chain Transactions
The integration makes use of CCIP’s streamlined token transfer features to facilitate the easy transfer of ETHx tokens between the previously listed chains. All Stader users should benefit from this change, which aims to promote more seamless and secure cross-chain communication.
Furthermore, in an effort to promote ETHx adoption in decentralized finance (DeFi) ecosystems, Stader is supporting an Ethereum blockchain ETHx/ETH Chainlink Price Feed.
What Makes Chainlink CCIP so Special?
Selecting CCIP as the recommended interoperability solution was a significant choice. In the Web3 industry, Chainlink has built a solid reputation for upholding the highest standards of security and dependability. Not only is the protocol strong, but the Risk Management Network reinforces it.
In order to mitigate potential threats and weaknesses, this independent network is essential in continuously monitoring and authenticating cross-chain activity.
Principal Attributes and Advantages of Chainlink CCIP Integration
- Time-tested Security: Chainlink’s decentralized oracle networks already protect a lot of smart contract value and make it possible for over $9 trillion worth of transactions to happen on the chain. They provide a solid foundation for the CCIP framework. It ensures unparalleled dependability with its many security tiers and intelligent execution procedures.
- Safe Token Transfers: Token pool contracts that are audited are used in CCIP’s plug-and-play solutions to handle intricate token activities between chains. Through a single CCIP interface, ecosystem partners can easily design additional functions around ETHx, and these transfers are further safeguarded by Rate Limits.
- Programmable Token Transfers, such as ETHx and arbitrary data, can be carried out in a single atomic transaction thanks to the interoperability protocol. This feature makes sure that explicit instructions about how to handle ETHx tokens once they reach the destination chain can be encoded in the data payload.
- Future-Proof Technology: CCIP is built to accommodate ongoing upgrades, making it easier to include new blockchains, add sophisticated features, and add more security measures. With this future-proof method, expensive protocol swaps become unnecessary when new cross-chain functions appear.
Industry Overview and Prospects
Amit Gajjala, Co-Founder of Stader Labs, emphasized the significance of the integration by saying,
“We’re excited to integrate the industry-standard Chainlink CCIP to help secure cross-chain transfers of ETHx.”
Utilizing CCIP’s sophisticated risk management infrastructure and level-5 security, we can contribute to a greater uptake of ETHx throughout DeFi. You can see this video on YouTube for a more in-depth overview of these developments.
Comparative Application
DinariGlobal uses Chainlink CCIP to securely transmit USD+, their interest-bearing stablecoin, between the Ethereum and Arbitrum networks. ETHNews previously covered this.
This implementation demonstrates how Chainlink may satisfy key needs for tokenized real-world assets (RWA), such as secure cross-chain transfers, consistent chain-wide updates, and real-world data augmentation, in line with what ETHNews previously disclosed.
According to CoinMarketCap, Chainlink’s native cryptocurrency, LINK, is currently trading around $13.60, up 3.03% in the last 24 hours. But, it also indicates a downtrend of 21.35% over the last 7 days.