The Integration of stETH into BNB Chain by Lido Finance
- Lido Finance has incorporated stETH into BNB Chain, which is its first cross-chain initiative.
- The integration uses Axelar and Wormhole to bridge $23 billion of TVL to BNB.
- Lido remains the leading DeFi protocol with $25.94 billion in TVL and 1 million validators.
In a groundbreaking decision, the Lido Finance community voted to integrate its stETH (staking Ethereum) into the BNB chain. This move, approved via an on-chain vote in the Lido Decentralized Autonomous Organization (DAO) on August 9, signifies Lido’s first venture into connecting with a layer 1 blockchain beyond the Ethereum ecosystem.
Expanding Utility in DeFi Space
This significant step allows Lido’s Total Value Locked (TVL) to engage with one of the top five chains by TVL, broadening its outreach and utility within the decentralized finance (DeFi) sector. The integration leverages Axelar and Wormhole as primary solutions to link stETH to the BNB chain.
Transitioning to a new blockchain represents Lido Finance’s strategic effort to enhance its role in the rapidly evolving DeFi landscape. With a stronghold in the Ethereum staking market, Lido captures 28.2% of ETH net deposits, positioning itself as a key player in the staking services sector.
Liquid Staking and Influence in DeFi
Lido’s pioneering approach to liquid staking has reshaped the DeFi narrative, offering users the opportunity to earn yield while maintaining asset flexibility. By depositing ETH to receive stETH, users can generate interest that mirrors the underlying asset, enabling seamless participation in staking activities.
According to DefiLlama data, Lido’s liquidity staking protocol contributes $26.227 billion to the total DeFi ecosystem valuation of $83.782 billion, solidifying its status as the leading DeFi protocol. Moving forward, the integration into the BNB Chain is poised to amplify Lido’s influence and operational breadth within the DeFi domain.
