TLDR:
- Incorporating Chainlink's CCIP, Lido now supports straightforward ETH staking across chains like Arbitrum, Base, and Optimism.
- Through a single action, users can stake their ETH from layer-2 networks and obtain wstETH conveniently.
- The integration offers Chainlink data feeds for up-to-minute exchange rates and automates liquidity management.
- Manual bridging or using intermediary exchanges is now obsolete with the new system.
- The Direct Staking feature holds potential for integration with additional networks down the line.
Acknowledged for its prowess in liquid staking, Lido has introduced a sophisticated cross-chain staking functionality. powered by Chainlink's Cross-Chain Interoperability Protocol is a keystone in this transformation. Users from layer-2 networks like Arbitrum, Base, and Optimism can now stake ETH directly, receiving wstETH effortlessly.
The novel Direct Staking feature revolutionizes staking from layer-2 networks, bundling it into a seamless single transaction. Previously, choices included trading via third-party platforms or complex manual ETH bridging to Ethereum mainnet, often stretching to a week.
Streamlined by Chainlink’s CCIP, this process uses Programmable Token Transfer, facilitating one-step transactions across blockchain networks for user-friendliness.
The Direct Staking system empowers users with diverse ETH staking methods, tailored to cost and velocity preferences. The initial method involves staking on a layer-2 network before routing ETH to Ethereum via CCIP, where designated contracts complete the process and transfer wstETH back to the user's layer-2 wallet.
Another approach allows for ETH staking on a layer-2 network with immediate wstETH from a liquidity pool, reliant on updated exchange rate feeds. The initial ETH is subsequently moved to Ethereum with staking directives, while resultant wstETH refills the pool.
Beyond CCIP, Lido's integration utilizes other Chainlink services. Data feeds ensure precise exchange rates for wstETH redemption, and Chainlink Automation periodically coordinates cross-chain ETH transfer batches.
Jakov Buratović, Lido’s illustrious DeFi expert, highlighted the system’s enhancements in liquidity and cross-chain operability on layer-2 networks, aligning with Lido's aim to make liquid staking pervasive yet decentralized.
This implementation doesn’t alter Lido's central protocol or existing wstETH arrangements, granting potential for future expansion to other layer-2 networks or alternative layer-1 networks.
Security was pivotal in Lido's choice of Chainlink CCIP, with its robust defense-in-depth and decentralized oracle networks, responsible for handling trillions in transaction value.
Johann Eid from Chainlink Labs emphasized that the integration provides accessible liquid staking tokens even in low-fee, swift-execution environments. He underscored their pivotal role in the DeFi economy's expansion.
Numerous DeFi platforms such as XSwap, OpenOcean, and Interport have embraced this direct staking functionality, indicating a blossoming trend for cross-chain staking solutions within the DeFi ecosystem.
Lido continues its core operations on Ethereum mainnet, where staked ETH positions are convertible into liquid wstETH tokens, usable across a variety of DeFi platforms. Now, the benefits extend to layer-2 networks, offering users lower transaction fees.
This integration signifies a leap forward in staking accessibility, overcoming earlier hurdles like multi-step processes and prolonged wait times for users staking ETH from layer-2 platforms.
Chainlink’s extensive platform endows Lido with integrated solutions spanning data, computation, and cross-chain continuity, ensuring the new staking system’s reliability across diversified networks.
While existing wstETH deployments remain unaffected, the Direct Staking feature offers Juser-centric options for acquiring wstETH, based on various preferences and requisites.
