The Collaboration Between Neutron, Axelar, and Lido to Launch wstETH on Cosmos
The collaboration between Neutron and Axelar has been chosen by Lido, the leading liquid staking provider, to serve as the preferred technology bridging partners for the launch of Lido’s wrapped liquid staked ETH (wstETH) on Cosmos. This collaboration aims to enhance cross-chain interoperability and support the expansion of wstETH and other assets within the Cosmos ecosystem.
Both Neutron and Axelar have committed 1% of their network genesis supply in token incentives to build liquidity for wstETH through DeFi applications within the Inter-Blockchain Communication Protocol (IBC) ecosystem. This initiative will also pave the way for future expansion to other L1 ecosystems.
Lido’s Wrapped Liquid Staked ETH on Cosmos
Lido Finance is known as the leading provider of liquid staking solutions, with its staked ETH currently having a market cap of $13.8 billion. Lido offers two types of staked ETH tokens: a rebasing token called stETH and a wrapped, auto-compounding token called wstETH. The collaboration between Neutron, Axelar, and Lido will enable the bridging of wstETH from the Ethereum ecosystem to Cosmos through Axelar and Neutron. This will make wstETH accessible to various chains within the IBC ecosystem, including Cosmos, Cronos, Sommelier, and major DeFi protocols such as Osmosis and dYdX.
Benefits of Cross-Chain Expansion
Axelar is proud to lead the launch of wstETH into the Cosmos ecosystem. Through Squid’s cross-chain liquidity router, this expansion will optimize asset bridging and significantly speed up secure deposits compared to current bridged deployments. The collaboration between Neutron, Axelar, and Lido demonstrates the value of cross-chain support and the commitment to bringing liquidity and users to the Cosmos ecosystem.
The Future of wstETH on Cosmos
Once wstETH has been deployed on Cosmos and a cross-chain governance implementation has been developed, ownership, administration, and management of the bridge will be handed over to Lido DAO. This will give the Lido DAO the ability to upgrade the bridge contracts on the Neutron network, providing greater control and security for stAsset bridging.
About Axelar
Axelar is a full-stack interoperability layer for Web3 that enables blockchain integration into a seamless “Internet of blockchains.” It is a programmable and decentralized network secured by its proof-of-stake token, AXL. Axelar offers application users easy access to any digital asset or application with just one click, while developers can work with a simple API and access a range of tools and service providers.
About Neutron
Neutron is a highly secure cross-chain smart-contracting platform that combines the security of the Cosmos Hub with advanced cross-chain infrastructure. It enables DeFi applications to scale securely across an interconnected network of 51+ blockchains.
About Lido
Lido is a multi-chain staking solution that allows users to earn interest on their digital assets without locking them or maintaining hardware. With integration across multiple blockchain ecosystems, including Ethereum, Solana, Kusama, Polkadot, and Polygon, Lido aims to democratize staking and empower users to put their staked assets to use.
Hot Take: Enhancing Cross-Chain Interoperability through Collaboration
The collaboration between Neutron, Axelar, and Lido marks an important step in enhancing cross-chain interoperability within the crypto space. By bridging Lido’s wrapped liquid staked ETH (wstETH) to Cosmos, this partnership enables greater accessibility and liquidity for wstETH across various blockchain ecosystems. The commitment to building liquidity through DeFi applications and incentivizing token holders demonstrates the value of collaboration in fostering innovation and seamless interoperability. This initiative not only benefits Lido and its stakeholders but also contributes to the growth and expansion of the Cosmos ecosystem as a whole.
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