One of the biggest names in Ethereum staking, Lido Finance, has made a big move by adding its staked Ethereum (stETH) to the BNB Chain. The Lido decentralized autonomous organization (DAO) accepted this change through an on-chain vote on August 9, 2024. This is Lido’s first move outside of the Ethereum environment, connecting to an external layer-1 blockchain.
The Axelar and Wormhole protocols make the merger possible, letting over $23 billion in total value locked (TVL) connect with the BNB Chain, which is one of the top five blockchainsby TVL. Lido’s position in the decentralized finance (DeFi) sector will grow stronger after this milestone. It will also make it possible for its ETH to be used in more DeFi apps.
Even though its share went down a little at the beginning of the year, Lido Finance still has 28.2% of all net ETH transfers, making it the leader in the Ethereum staking market. The platform’s important role in the DeFi environment is shown by its large validator network, which grew to one million in April 2024. A big part of DeFi’s growth has been Lido’s liquid staking strategy, which lets users earn yields while still having the freedom to sell or move their staked assets.
Based on figures from DefiLlama, Lido already has a big share of the DeFi market, with $26.227 billion in TVL. This integration is likely to make its position even stronger. Lido has also created Lido Institutional, a liquid staking option for big investors. This strengthens its position as the leader in the staking sector while regulators keep a close eye on it.
