Hedera announces the integration of LayerZero, a new multi-chain interoperability protocol, with the release of mainnet v0.54. This development strengthens the network's position as a platform for institutional DeFi users, unlocking new liquidity sources.
Key Benefits for Hedera's Ecosystem
The LayerZero integration enhances the Hedera Token Service (HTS), allowing for the creation and management of fungible and non-fungible tokens with fast and cost-effective transactions. It provides Omnichain Fungible Token (OFT) compatibility and direct dApp connectivity to LayerZero's endpoint, offering a seamless bridging experience. Additionally, a governance proposal to the Stargate DAO is in preparation for supporting the hUSDC asset.
Mainnet v0.54: Features and Improvements
The new mainnet version 0.54 supports critical components for implementing HIP-904: 'Frictionless Airdrops'. It allows accounts to associate with multiple tokens without pre-payment of fees. Key features include keeping tokens in a 'pending' state, mass token distribution, and cancellation of unclaimed airdrops. Recipients can also return tokens back to the treasury account.
Expanding Institutional Access to HBAR
The LayerZero integration follows the recent launch of the HBAR Trust in the USA, offered as a private placement, granting institutional investors access to Hedera's cryptocurrency. This is part of Canary Fund's strategy to pave the way for future HBAR-focused ETFs. Steven McClurg, CEO of Canary Capital, stated: 'Yet, there remains a gap regarding firms with institutional experience who are willing to continue to innovate and deliver solutions beyond retail products.'
The integration of LayerZero and the launch of mainnet v0.54 highlight Hedera's strategic focus on supporting institutional liquidity within the network, reinforcing its position as a leading platform for DeFi.
