On August 9, the Lido Finance community approved the expansion of its services to the BNB Chain through an on-chain vote by the decentralized autonomous organization (DAO). This strategic initiative is Lido's first step outside the Ethereum ecosystem.
Integration Goals and Expectations
Lido Finance, holding a 28.2% share of the ETH staking market, is integrating its services with the BNB Chain, which has a total value locked (TVL) of approximately $23 billion. This integration is expected to open new liquidity opportunities for both Lido and the BNB Chain. The migration of stETH to the BNB Chain will be facilitated by Axelar and Wormhole, two trusted bridging solutions, ensuring secure and efficient transfer of assets between the ecosystems.
Lido's Staking Model
One of the key advantages of Lido's liquid staking model is asset mobility while earning staking rewards. Traditional staking models require assets to be locked, whereas Lido's model provides stETH tokens in return for staked ETH, which accrue interest and remain tradeable. This functionality, extended to the BNB Chain, will further enrich Lido's offering and enhance its appeal in the competitive DeFi landscape.
Launching Lido Institutional
In addition to the expansion to the BNB Chain, Lido Finance has recently launched Lido Institutional, a new liquid staking solution aimed at catering to large institutional clients such as custodians, asset managers, and exchanges. This platform combines the reliability and security required for enterprise staking with the liquidity and utility demanded by sophisticated institutional strategies. The launch of Lido Institutional follows months of preparation and strategic collaborations with infrastructure providers such as Taurus and Fireblocks, the latter of which was announced during the EthCC event in July.
The integration with the BNB Chain and the launch of Lido Institutional demonstrate Lido Finance's commitment to innovation and expansion to meet the growing needs of various users in the DeFi market.
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