Interoperability protocol LayerZero has introduced the ability to move the wrapped stETH token (wstETH) from the liquid staking protocol Lido Finance to Ethereum, Avalanche, BNB Chain and Scroll.
wstETH is also integrated into LayerZero’s omnichain fungible token standard, or OFT standard, which aims to avoid wrapped asset risks in cross-chain native token transfers. OFT moves tokens via the decentralized communications protocol, as opposed to minting and burning wrapped tokens.
The sign has not officially approved by Lido.
Extensive wstETH capabilities
LayerZero’s cross-chain interoperability of wstETH hopes to expand DeFi capabilities beyond Ethereum and into Avalanche, BNB, and Scroll.
“ETH is an important part of Avalanche’s DeFi ecosystem and the ability to obtain staking yields through Lido’s sETH and LayerZero’s OFT infrastructure helps fuel Avalanche’s LSD growth,” said Luigi D’Onorio DeMeo, head of DeFi and developer relations at Ava Labs.
According to The Block’s data dashboard, Lido has the most total value (TVL) among liquid staking protocols. As of October 25, Lido saw a value of $15.85 billion committed in liquid staking.