LayerZero Enables Cross-Chain Transfer of Wrapped stETH Token
The interoperability protocol LayerZero has introduced a new feature that allows you to move the wrapped stETH token (wstETH) across different blockchains including Ethereum, Avalanche, BNB Chain, and Scroll. This integration of wstETH into LayerZero’s omnichain fungible token standard (OFT standard) eliminates the risks associated with wrapped assets in cross-chain transfers.
Expanding Opportunities for wstETH
LayerZero’s cross-chain interoperability for wstETH aims to enhance decentralized finance (DeFi) opportunities beyond the Ethereum network and into Avalanche, BNB Chain, and Scroll. According to Luigi DโOnorio DeMeo, head of DeFi and developer relations at Ava Labs, “the ability to obtain staking yield through Lido’s stETH and LayerZeroโs OFT infrastructure helps foster Avalancheโs growth in the DeFi ecosystem.”
Lido Finance is currently the leading liquid staking protocol in terms of total value locked (TVL). As of October 25th, Lido has locked $15.85 billion in liquid staking.
Hot Take: LayerZero Enhances Cross-Chain Liquidity with Wrapped stETH
LayerZero’s introduction of cross-chain compatibility for the wrapped stETH token opens up new opportunities for decentralized finance users. By enabling the seamless transfer of wstETH across multiple blockchains, including Ethereum, Avalanche, BNB Chain, and Scroll, LayerZero promotes interoperability and expands the reach of DeFi beyond Ethereum’s ecosystem. This integration also mitigates the risks associated with wrapped assets in cross-chain transactions. With Lido Finance’s prominent position as the leading liquid staking protocol, the inclusion of wstETH in LayerZero’s omnichain fungible token standard (OFT standard) further solidifies its potential for growth and adoption in the DeFi space.
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