The Lido Finance community voted to expand its services to the BNB Chain, marking its first step outside the Ethereum ecosystem.
New Phase for Lido Finance
Through an on-chain vote by the Lido decentralized autonomous organization (DAO) on August 9, it was decided to integrate with BNB Chain. Lido Finance already holds a significant position in the Ethereum staking market, maintaining a 28.2% share of net ETH deposits. According to data from DefiLlama, Lido’s liquid staking protocol commands an impressive $26.48 billion out of the total $83.782 billion in the DeFi ecosystem. The BNB Chain, with a total value locked (TVL) of approximately $23 billion, ranks among the top five blockchain ecosystems by TVL. This integration is expected to open new liquidity avenues for both Lido and BNB Chain. The integration of Lido’s stETH with BNB Chain will be facilitated by Axelar and Wormhole, two of the most trusted bridging solutions in the blockchain space. These solutions will ensure a secure and efficient transfer of assets between the two ecosystems.
Lido's Staking Model
One of the key advantages of Lido’s liquid staking model is its ability to allow asset mobility while earning staking rewards. Unlike traditional staking models requiring assets to be locked up, Lido’s model provides stETH tokens in return for staked ETH, which accrue interest and remain tradeable. This functionality, now extended to BNB Chain, is expected to further enhance Lido’s offering and increase its appeal in the competitive DeFi landscape.
Lido Institutional: Solution for Large Investors
In addition to its expansion to BNB Chain, Lido Finance recently launched Lido Institutional, a new liquid staking solution aimed at meeting the needs of large institutional clients such as custodians, asset managers, and exchanges. This middleware platform is designed to combine the reliability and security necessary for enterprise-level staking with the liquidity and utility required by sophisticated institutional strategies. The launch of Lido Institutional follows months of preparation and strategic collaborations with infrastructure providers like Taurus and Fireblocks. The latter partnership was announced during the EthCC event in July.
The expansion of Lido Finance’s services to BNB Chain marks a significant milestone in the company's development, opening new liquidity avenues and strengthening its position in the DeFi market.
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