**Chainlink Partners with Lido to Revolutionize Cross-Chain Staking**
Lido has announced a groundbreaking integration with Chainlink’s Cross-Chain Interoperability Protocol (CCIP) to enable seamless cross-chain staking across leading Ethereum layer-2 networks, including Arbitrum, Base, and Optimism. This collaboration powers Lido’s Direct Staking feature, allowing users to stake ETH from various blockchain networks and receive wrapped staked ETH (wstETH) in return.
**Simplifying Staking with Direct Staking**
The integration of Chainlink’s CCIP streamlines the staking process, eliminating the need for users to exchange ETH for wstETH through third-party platforms or manually bridge ETH to the Ethereum mainnet. With Lido’s Direct Staking, users can now stake their ETH directly from Arbitrum, Base, or Optimism and receive wstETH in a single transaction.
**Enhancing Liquidity and Interoperability**
This innovative staking approach enhances liquidity and supports cross-chain interoperability across layer-2 networks. Jakov Buratović, Lido’s Master of DeFi, stated that this integration aligns with Lido’s mission to democratize staking by making liquid staking more accessible while maintaining decentralization and advancing the broader DeFi ecosystem.
**Chainlink’s Role in the Integration**
Chainlink’s CCIP was chosen for its advanced security measures and proven track record in securing decentralized networks. Additionally, Lido will utilize Chainlink’s Data Feeds to determine wstETH’s redemption rate on Ethereum, providing reliable data for the exchange rate. Chainlink Automation will also be used to batch cross-chain ETH transfers, enhancing liquidity management.
**Benefits of the Integration**
The integration of Chainlink’s CCIP with Lido’s Direct Staking offers numerous benefits, including:
* Simplified staking process for users
* Enhanced liquidity across layer-2 networks
* Improved interoperability and access to liquid staking tokens (LSTs)
* Increased security and decentralization
**Expanding Accessibility**
Lido 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.
**Quote from Chainlink Labs’ Chief Business Officer**
Johann Eid, Chainlink Labs’ Chief Business Officer, stated that 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.”
**Unlocking the Potential of DeFi**
The partnership between Lido and Chainlink has the potential to revolutionize the DeFi space by making liquid staking more accessible and user-friendly. As the DeFi ecosystem continues to evolve, collaborations like this will play a crucial role in unlocking its full potential.
Mentioned in this article:
Lido
Chainlink
Arbitrum
Base
Optimism