Chainlink CCIP powers Lido’s new cross-chain staking on Arbitrum, Base, and Optimism News ▸ Chainlink · Optimism ▸ Technology
Chainlink CCIP powers Lido’s new cross-chain staking on Arbitrum, Base, and Optimism
Lido's Chainlink integration transforms staking, providing users with direct access to wstETH on Arbitrum, Base, and Optimism.
2 min read
Updated: Oct. 29, 2024 at 9:16 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Lido has announced the integration of Chainlink’s Cross-Chain Interoperability Protocol (CCIP) to enable cross-chain staking across Ethereum layer-2 networks such as Arbitrum, Base, and Optimism, according to an Oct. 29 statement shared with CryptoSlate.
This integration will power Lido’s Direct Staking feature, allowing users to stake ETH from various blockchain networks and receive wrapped staked ETH (wstETH) in return. At launch, the feature supports staking through the Arbitrum, Base, and Optimism networks.
Jakov Buratović, Lido’s Master of DeFi, commented that this new staking approach enhances liquidity and supports cross-chain interoperability across layer-2 networks. He stated:
“This aligns with Lido’s mission to democratize staking by making liquid staking more accessible, while maintaining decentralization and advancing the broader DeFi ecosystem.”
Alongside the staking integration, Lido will utilize Chainlink’s Data Feeds to determine wstETH’s redemption rate on Ethereum, providing reliable data for the exchange rate. Additionally, Lido will use Chainlink Automation to batch cross-chain ETH transfers, enhancing liquidity management.
According to Lido, Chainlink CCIP was chosen for its advanced security measures and the blockchain network’s proven track record in securing decentralized networks. Chainlink’s decentralized oracle networks have safeguarded billions of dollars in assets and facilitated trillions in on-chain transactions.
How it works
Previously, Lido required users to either exchange ETH for wstETH through third-party platforms or manually bridge ETH to the Ethereum mainnet.
With the new integration, Lido’s Direct Staking, combined with Chainlink’s Programmable Token Transfer, streamlines this process into a single transaction. Users can now stake their ETH directly from Arbitrum, Base, or Optimism and receive wstETH without extra steps.
The Direct Staking feature, powered by CCIP, enables seamless cross-chain transactions. This integration supports not only token transfers but also includes token instructions, which Chainlink’s Programmable Token Transfers facilitate in one smooth transaction.
Lido also emphasized that this method of obtaining wstETH on layer-2 networks complements existing processes without altering the core Lido protocol or wstETH deployment. The staking provider noted that the Direct Staking feature could expand to other layer-2 and alternative layer-1 networks, increasing accessibility.
Chainlink Labs’ Chief Business Officer Johann Eid said the integration would “unlock a one-step connection to staking for Lido on Arbitrum, Base, and Optimism, enabling users to easily access the benefits of [liquid staking tokens] in low-fee, fast-execution environments.”
Eid added:
“LSTs have become an important part of the DeFi economy and making them more easily accessible across the multi-chain landscape through the use of CCIP will help grow the onchain economy.”
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Ethereum
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Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
Optimism
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Optimism is a layer-2 scaling network for the Ethereum blockchain.
Arbitrum
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