Lido has introduced the mixing of Chainlink’s Cross-Chain Interoperability Protocol (CCIP) to allow cross-chain staking throughout Ethereum layer-2 networks akin to Arbitrum, Base, and Optimism, in response to an Oct. 29 assertion shared with CryptoSlate.
This integration will energy Lido’s Direct Staking function, permitting customers to stake ETH from varied blockchain networks and obtain wrapped staked ETH (wstETH) in return. At launch, the function helps staking by way of the Arbitrum, Base, and Optimism networks.
Jakov Buratović, Lido’s Grasp of DeFi, commented that this new staking method enhances liquidity and helps cross-chain interoperability throughout layer-2 networks. He acknowledged:
“This aligns with Lido’s mission to democratize staking by making liquid staking extra accessible, whereas sustaining decentralization and advancing the broader DeFi ecosystem.”
Alongside the staking integration, Lido will make the most of Chainlink’s Information Feeds to find out wstETH’s redemption charge on Ethereum, offering dependable knowledge for the change charge. Moreover, Lido will use Chainlink Automation to batch cross-chain ETH transfers, enhancing liquidity administration.
In keeping with Lido, Chainlink CCIP was chosen for its superior safety measures and the blockchain community’s confirmed monitor report in securing decentralized networks. Chainlink’s decentralized oracle networks have safeguarded billions of {dollars} in belongings and facilitated trillions in on-chain transactions.
The way it works
Beforehand, Lido required customers to both change ETH for wstETH by way of third-party platforms or manually bridge ETH to the Ethereum mainnet.
With the brand new integration, Lido’s Direct Staking, mixed with Chainlink’s Programmable Token Switch, streamlines this course of right into a single transaction. Customers can now stake their ETH immediately from Arbitrum, Base, or Optimism and obtain wstETH with out additional steps.
The Direct Staking function, powered by CCIP, permits seamless cross-chain transactions. This integration helps not solely token transfers but in addition contains token directions, which Chainlink’s Programmable Token Transfers facilitate in a single clean transaction.
Lido additionally emphasised that this technique of acquiring wstETH on layer-2 networks enhances current processes with out altering the core Lido protocol or wstETH deployment. The staking supplier famous that the Direct Staking function may develop to different layer-2 and various layer-1 networks, rising accessibility.
Chainlink Labs’ Chief Enterprise Officer Johann Eid mentioned the mixing would “unlock a one-step connection to staking for Lido on Arbitrum, Base, and Optimism, enabling customers to simply entry the advantages of [liquid staking tokens] in low-fee, fast-execution environments.”
Eid added:
“LSTs have change into an vital a part of the DeFi economic system and making them extra simply accessible throughout the multi-chain panorama by way of using CCIP will assist develop the onchain economic system.”