**Lido Integrates Chainlink’s Cross-Chain Interoperability Protocol for Seamless Staking Across Ethereum Layer-2 Networks**
In a significant development, Lido has announced the integration of Chainlink’s Cross-Chain Interoperability Protocol (CCIP) to enable cross-chain staking across Ethereum layer-2 networks, including Arbitrum, Base, and Optimism.
This integration powers Lido’s Direct Staking feature, allowing users to stake ETH from various blockchain networks and receive wrapped staked ETH (wstETH) in return. The feature supports staking through Arbitrum, Base, and Optimism networks at launch, providing users with a seamless staking experience.
According to Jakov Buratović, Lido’s Master of DeFi, this integration 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.”
**Key Benefits of the Integration**
* **Enhanced Liquidity**: The integration enables users to stake ETH from various blockchain networks, providing a more liquid staking experience.
* **Cross-Chain Interoperability**: The integration supports seamless cross-chain transactions, enabling users to stake ETH across different layer-2 networks.
* **Simplified Staking Process**: The Direct Staking feature, powered by CCIP, streamlines the staking process into a single transaction, eliminating the need for extra steps.
**How it Works**
1. **Simplified Staking Process**: Users can stake their ETH directly from Arbitrum, Base, or Optimism and receive wstETH without extra steps.
2. **Chainlink’s Programmable Token Transfer**: The integration uses Chainlink’s Programmable Token Transfer to facilitate seamless cross-chain transactions.
3. **Token Instructions**: The Direct Staking feature, powered by CCIP, enables token instructions to be included in the transaction, making it a smooth and efficient process.
**Chainlink’s Role**
Chainlink’s 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.
**Future Expansion**
Lido emphasized that the Direct Staking feature could expand to other layer-2 and alternative layer-1 networks, increasing accessibility and providing a more seamless staking experience for users.
**Industry Insights**
Johann Eid, Chainlink Labs’ Chief Business Officer, commented, “Unlocking a one-step connection to staking for Lido on Arbitrum, Base, and Optimism, enabling users to easily access the benefits of LSTs 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 on-chain economy.”