The Lido community has voted to bring stETH to the BNB Chain
In an onchain vote completed on August 9, the Lido Community Decentralized Autonomous Organization (DAO) approved the integration of Acceler and Wormhole as the canonical solution to connect Lido Staked ETH to the BNB Chain.
According to the announcement, the bridge will allow $23 billion in total value locked to connect to the BNB Chain, which is a top five chain measured by total value locked.
The introduction of Lido Staked ETH (stETH) to the BNB Chain marks a major milestone, Lido explained, as it is the first time Lido has connected to a Layer-1 blockchain protocol outside of the Ethereum ecosystem.
Lido's share of the Ether market
Although Lido's share of the Ether market has dropped to less than 30% by 2024, the staking platform remains the largest shareholder in the stock market with 28.2% of net Ether (ETH) deposits.
Related: Lido Launches Institutional-Level Liquidity Resolution
Lido will reach one million validators by April 2024, leading to a resurgence of decentralized finance and cement deposits as the largest sector in DFI.
According to data from Defilama, the total value locked (TVL) in the entire DeFi ecosystem is $83.4 billion, while Lido Liquidity accounts for $25.94 billion of the market's TVL. This makes Lido the largest DeFi protocol by a large margin, followed by EigenLayer, a repo protocol, with $12.694 billion in TVL.
These two protocols were the main drivers responsible for bringing TVL to nearly $100 billion in DeFi by the first quarter of 2024, highlighting the popularity of Ethereum's staking services.
The importance of liquid stack protocols
While traditional stock services require funds to be locked up for a period of time, preventing funds from being traded or moved, liquid stock protocols allow investors to move their digital assets freely and users to move those assets freely.
In the case of Lido Finance, this is done by users staking the underlying asset into a liquid staking protocol. For example, ETH will be the underlying asset for stETH. Once deposited, a corresponding stETH token is generated, which accrues interest over time and can be traded or bought for the underlying asset at a 1:1 ratio.
Magazine: Ethereum Resurgence: Blockchain Innovation or Dangerous House of Cards?
