Neutron and Axelar to Bring Lido Finance’s wstETH Token to Cosmos
Cross-chain smart contract platform Neutron and interoperability protocol Axelar have been chosen by Lido Finance to launch its wrapped liquid staked ether (wstETH) token into the Cosmos ecosystem. Over 30 Cosmos teams have shown interest in integrating wstETH. Neutron and Axelar will provide token incentives to build liquidity for wstETH through DeFi applications within the Cosmos ecosystem.
Neutron core contributor Avril Dutheil expressed excitement about bringing Lido’s staked ether to Cosmos, highlighting the collaboration between Neutron, Axelar, and the Lido DAO as a demonstration of how blockchain projects can foster innovation and interoperability. Sergey Gorbunov, co-founder of Axelar, stated that AXL will secure the cross-chain expansion of wstETH.
Once wstETH is deployed on Cosmos and cross-chain governance is established, the deployment reins will be handed over to the Lido DAO.
Lido’s Dominance in Liquid Staking
Lido Finance’s liquid staking solution enables users to unlock liquidity for staked assets and use it as capital in various DeFi applications through a liquid staking derivative token. Lido offers two tokens: stETH, a rebasing token with an adjustable total supply, and wstETH, an auto-compounding token that reinvests rewards. Neutron and Axelar will facilitate bridging wstETH to Cosmos.
Lido currently holds around 70% of the liquid staking market on Ethereum with $14 billion in total value locked (TVL), surpassing competitors like Coinbase and Rocket Pool. Lido supports multiple blockchains for liquid staking, including Ethereum, Polygon, and Solana. It also offers wstETH bridging on the OP Mainnet and Arbitrum Ethereum Layer 2 networks.
Hot Take: Lido Finance Expands to Cosmos with Neutron and Axelar
Lido Finance’s partnership with Neutron and Axelar marks an important milestone in its quest for cross-chain interoperability. By bringing the wrapped liquid staked ether (wstETH) token to the Cosmos ecosystem, Lido expands its dominance in the liquid staking market. With over 30 Cosmos teams interested in integrating wstETH, this collaboration paves the way for increased liquidity within the Cosmos DeFi ecosystem. Neutron and Axelar’s commitment to providing token incentives demonstrates their belief in the potential of wstETH. As Lido continues to support multiple blockchains and offer bridging solutions, it solidifies its position as a leader in the liquid staking space.
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