Lido Finance votes to integrate stETH into the BNB chain

• Lido Finance integrates stETH into the BNB chain, marking its first cross-chain move.
• The integration uses Axelar and Wormhole to bridge $23 billion of TVL to BNB.
• Lido remains a leading DeFi protocol with $25.94 billion TVL and one million validators.

In a historic decision, the Lido Finance community voted to integrate its stETH (Staked Ethereum) into the BNB chain. This decision, finalized on August 9 by a chain vote by decentralized autonomous organization (DAO) Lido, marks the first time Lido has connected to a layer-1 blockchain outside of the Ethereum ecosystem.

The approved integration will use Axelar and Wormhole as canonical solutions to bridge stETH to the BNB chain.

Lido seeks to expand its utility within DeFi

This significant development allows Lido’s Total Value Locked (TVL) to interact with any of the top five chains by TVL, expanding its reach and utility in the decentralized finance (DeFi) sector.

Lido Finance remains a dominant player in the Ethereum staking market, holding a substantial 28.2% share of ETH net deposits.

Despite a slight decline at the start of the year, Lido’s position as a leading staking platform is reinforced by its vast network of validators, which reached one million in April 2024. This growth underscores the platform’s vital role in the DeFi ecosystem and its impact on staking services.

The DeFi landscape has seen significant contributions from liquid staking protocols like Lido. Unlike traditional staking, which locks up funds for a set period, liquid staking allows users to earn yields while maintaining the flexibility to move or swap their staked assets.

For Lido, this process involves depositing ETH to receive stETH, a token that accrues interest and can be traded at a roughly 1:1 ratio with the underlying asset.

According to DefiLlama DataLido’s liquid staking protocol accounts for a remarkable $26.227 billion of the total $83.782 billion in the DeFi ecosystem, solidifying its position as the largest DeFi protocol. This integration into the BNB chain is expected to further strengthen Lido’s influence and operational reach in the DeFi space.