- Lido Finance is integrating stETH into the BNB chain, making it the first cross-chain activity.
- This integration connects $23 billion TVL to BNB using Axelar and Wormhole.
- Lido remains the leading DeFi protocol with $25.94 billion TVL and 1 million validators.
In a groundbreaking decision, the Lido Finance community has voted to integrate stETH (Staked Ethereum) into the BNB chain. The move, which was confirmed on August 9th through an on-chain vote by the Lido Decentralized Autonomous Organization (DAO), marks the first time Lido has connected to a Layer 1 blockchain outside of the Ethereum ecosystem.
The approved integration leverages Axelar and Wormhole as a standard solution to connect stETH to the BNB chain.
Lido Seeks to Expand Utility Within DeFi
This important development will allow Lido’s Total Value Locked (TVL) to interact with any of the top five chains by TVL, expanding its influence and utility in the decentralized finance (DeFi) space.
Lido Finance remains the dominant player in the Ethereum staking market, holding a significant 28.2% share of net ETH deposits.
Despite a slight downturn earlier this year, Lido’s position as a leading staking platform has been strengthened by its extensive validator network, which reached 1 million in April 2024. This growth highlights the platform’s important role in the DeFi ecosystem and its impact on staking services.
Liquid staking protocols like Lido have made significant contributions in the DeFi landscape. Unlike traditional staking, which involves locking up funds for a certain period of time, liquid staking allows users to earn returns while maintaining the flexibility to move or trade their staked assets.
For Lido, this process involves depositing ETH and receiving stETH, which is an interest-bearing token that can be redeemed at approximately a 1:1 ratio with the underlying asset.
According to DefiLlama data, Lido’s liquid staking protocol has solidified its position as the largest DeFi protocol, accounting for a whopping $26.227 billion of the total $83.782 billion in the DeFi ecosystem. This integration with BNB Chain is expected to further strengthen Lido’s influence and operational reach in the DeFi space.