Lido has introduced the combination of Chainlink’s Cross-Chain Interoperability Protocol (CCIP) to allow cross-chain staking throughout Ethereum layer-2 networks similar to Arbitrum, Base, and Optimism, in keeping with an Oct. 29 assertion shared with CryptoSlate.
This integration will energy Lido’s Direct Staking characteristic, permitting customers to stake ETH from varied blockchain networks and obtain wrapped staked ETH (wstETH) in return. At launch, the characteristic helps staking by 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 said:
“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 price on Ethereum, offering dependable knowledge for the trade price. Moreover, Lido will use Chainlink Automation to batch cross-chain ETH transfers, enhancing liquidity administration.
Based on Lido, Chainlink CCIP was chosen for its superior safety measures and the blockchain community’s confirmed observe report in securing decentralized networks. Chainlink’s decentralized oracle networks have safeguarded billions of {dollars} in property and facilitated trillions in on-chain transactions.
The way it works
Beforehand, Lido required customers to both trade ETH for wstETH by 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 instantly from Arbitrum, Base, or Optimism and obtain wstETH with out further steps.
The Direct Staking characteristic, powered by CCIP, permits seamless cross-chain transactions. This integration helps not solely token transfers but additionally contains token directions, which Chainlink’s Programmable Token Transfers facilitate in a single easy transaction.
Lido additionally emphasised that this technique of acquiring wstETH on layer-2 networks enhances present processes with out altering the core Lido protocol or wstETH deployment. The staking supplier famous that the Direct Staking characteristic may develop to different layer-2 and various layer-1 networks, rising accessibility.
Chainlink Labs’ Chief Enterprise Officer Johann Eid stated the combination 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 turn into an necessary a part of the DeFi financial system and making them extra simply accessible throughout the multi-chain panorama by using CCIP will assist develop the onchain financial system.”
