Lido Finance has voted to integrate stETH into the BNB Chain
Lido Finance integrates stETH with the BNB Chain, marking the first cross-chain move. The merger will use Axelar and Wormhole to link $23 billion in TVL to BNB. Lido remains the leading DeFi protocol with $25.94 billion TVL and one million validators.
In a surprising decision, the Lido Finance community has voted to merge stETH (Staked Ethereum) with the BNB Chain. This step was completed on August 9th by Lido's Decentralized Autonomous Organization (DAO) through an on-chain vote, marking Lido's first connection to the Layer-1 blockchain outside of the Ethereum ecosystem.
The approved integration uses Axelar and Wormhole as canonical solutions to connect stETH to the BNB Chain.
Lido wants to expand its utility in DeFi
This significant development allows Lido's Total Value Locked (TVL) to connect with all five major blockchains at TVL, expanding its reach and leverage in the decentralized finance (DeFi) sector.
Lido Finance continues to be a major player in the Ethereum stock market, accounting for a whopping 28.2% share of net ETH deposits.
Although slightly down year-over-year, Lido's position as a leading staking platform is solidified by its extensive verifier network, which reached one million in April 2024. This development highlights the platform's critical role in the DeFi ecosystem and its impact on service delivery.
The DeFi landscape has seen significant contributions from liquid staking protocols such as Lido. Unlike traditional stocks, which lock up money for a certain period of time, liquid stocks allow users to access products with the flexibility to move or trade their holdings.
For Lido, this process involves exchanging ETH to receive stETH, which accrues interest and is redeemed at a 1:1 ratio with the original asset.
According to Defillama data, the Lido liquid staking protocol commands an impressive $26.227 billion of the total $83.782 billion in the DeFi ecosystem, making it the largest DeFi protocol. This BNB chain integration is expected to further increase Lidon's influence and scope of work in the DeFi space.
