Lido Finance is set to expand its services beyond the Ethereum ecosystem by integrating with the BNB Chain. This decision was made based on a vote by the Lido DAO on August 9.
Expansion to BNB Chain
The Lido Finance community voted to expand its services to the BNB Chain. This strategic move, finalized on August 9 through an on-chain vote by the Lido decentralized autonomous organization (DAO), represents Lido’s first venture beyond the Ethereum ecosystem. Lido Finance is already a dominant player in the Ethereum staking market, holding a substantial 28.2% share of net ETH deposits. According to data from DefiLlama, Lido’s liquid staking protocol commands a remarkable $26.48 billion of the total $83.782 billion in the DeFi ecosystem. On the other hand, the BNB Chain, which boasts a total value locked (TVL) of approximately $23 billion, is one of the top five blockchain ecosystems by TVL. This integration is expected to open new liquidity avenues for both Lido and the BNB Chain.
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 that require 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 the BNB Chain, is expected to further enrich Lido’s offering and enhance its appeal in the competitive DeFi landscape.
Introducing Lido Institutional
In addition to its expansion to the BNB Chain, Lido Finance has 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 comes after 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 expansion of Lido Finance's services to the BNB Chain and the launch of the new Lido Institutional platform mark significant steps in strengthening the company's position in the DeFi ecosystem. This expansion is expected to open new liquidity opportunities and attract new large clients.
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