Using Chainlink’s Cross-Chain Interoperability Protocol (CCIP), Lido has launched a cross-chain staking feature targeting ETH staking across Ethereum layer 2 networks such as Arbitrum, Base, and Optimism. With this integration, users can stake to these networks directly without additional transactions and receive wrapped staked ETH (wstETH) in a single transaction. The new approach provides a streamlined, straightforward liquid staking procedure on Lido without the need to perform additional steps or use third-party platforms.
With Chainlink CCIP, Lido’s Direct Staking feature allows users to stake ETH from various blockchain networks to further enable wstETH accessibility. Before this, staking from Lido required manual bridging or using third parties to swap, making most processes needlessly complicated. Through Direct Staking, Lido simplifies the experience and renders it more usable and liquid across multiple networks.
Lido Boosts Accessibility with Chainlink Integration
With Lido’s integration of the Chainlink Protocol, Lido is working towards its mission of democratizing staking by making liquid staking much more accessible. The cross-chain staking feature enables access to liquidity and allows users to stake their tokens directly from Arbitrum, Base, and Optimism without manual transfer. This enables Lido’s users to access broader cross-chain interoperability, which extends Ethereum’s layer-2 networks with broader liquidity.
The streamlined method of staking that this is built upon using Chainlink’s technology supports transfers of tokens and complex instructions in a single transaction. To that end, Lido has opted to use Chainlink’s Programmable Token Transfer system to ensure users have better access to staking services. However, this integration also leaves Lido in a solid position to grow further, including adding more layer 2’s or alternative layer 1’s to support more users.
Chainlink Powers Safe Low-Fee Staking for Lido
In addition to staking, Lido has now begun to use Chainlink’s Data Feeds to set wstETH redemption rates on Ethereum, allowing for correct exchange rate data. This data adds to Lido’s existing transparency and accurately tracks the value of staked ETH. In addition, Chainlink Automation groups the cross-chain ETH transfers into batches to optimize liquidity management and ensure that everything is consistent across supported networks.
Lido selected Chainlink due to its protocols being secure. The technology created secure decentralized oracle networks that kept billions of on-chain assets safe. Using Chainlink’s proven history measures, Lido further protects the integrity of its cross-chain staking feature. By collaborating with Chainlink, Lido secures its users’ staked assets while allowing its users to enjoy quick, low-fee transactions.
Enhanced DeFi Access with Lido’s New Integration
Deploying to an Ethereum layer two network eliminates the extra steps in staking by connecting to the Chainlink-powered integration, delivering a beautiful experience across layer two networks. The updated staking process described above is also compatible with the existing Lido protocol without altering the wstETH or the Lido platform at its core. Direct staking and programmable token transfers are a new way for users to stake their tokens across chains with minimized friction and enhanced access within the decentralized finance ecosystem (DeFi).
According to Johann Eid, Chief Business Officer of Chainlink Labs, the integration will allow a one-step connection from Lido’s staking ecosystem to the DeFi ecosystem. As liquid staking tokens become more popular, and as Lido supports cross-chain, this tool helps grow the total number of participants in the multi-chain landscape, contributing to the on-chain economy. Lido continues to align its goals with the broader DeFi mission of making decentralized infrastructure more accessible, efficient, and secure for all users by partnering with Chainlink.
