Lido Finance Integrates stETH with BNB Chain in Landmark Decision
- 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 landmark decision, the Lido Finance community voted to integrate its stETH (staking Ethereum) into the BNB chain. The measure, finalized via an on-chain vote in the Lido Decentralized Autonomous Organization (DAO) on August 9, marks the first time Lido has connected to a layer 1 blockchain outside of the Ethereum ecosystem.
Lido’s Expansion into BNB Chain through Axelar and Wormhole
Approved integrations will utilize Axelar and Wormhole as canonical solutions for bridging stETH to the BNB chain. This significant development enables Lido’s Total Value Locked (TVL) to interact with one of the top five chains by TVL, expanding its reach and utility in the decentralized finance (DeFi) space.
Lido Finance remains the dominant player in the Ethereum staking market, holding 28.2% of ETH net deposits. Despite a slight decline earlier this year, Lido’s position as the leading staking platform is strengthened by its extensive validator network, which reached 1 million in April 2024.
Lido’s Impact on DeFi Landscape and Liquidity Staking
Liquid staking protocols like Lido have made significant contributions to the DeFi landscape. Unlike traditional staking, which locks funds for a period of time, liquidity staking enables users to earn yield while retaining the flexibility to move or trade their staked assets.
For Lido, the process involves depositing ETH to receive stETH, an interest-generating token that can be redeemed at approximately a 1:1 ratio against the underlying asset. According to DefiLlama data, Lido’s liquidity staking protocol accounts for $26.227 billion of the total value of the DeFi ecosystem of $83.782 billion, solidifying its position as the largest DeFi protocol.
This integration into BNB Chain is expected to further enhance Lido’s influence and operational scope in the DeFi field.
