In a remarkable development concerning the DeFi sector, Lido Finance has integrated the Cross-Chain Interoperability Protocol of Chainlink. As per Chainlink, the integration of its CCIP into the top liquid staking firm enables direct staking of $ETH from prominent L2 networks such as Arbitrum and Optimism. The platform took to social media to disclose this development.
Latest Integration of Chainlink CCIP into Lido Enables Direct $ETH Staking on L2 Networks
Chainlink mentioned that this integration, lets consumers stake $ETH to get liquid staking coins such as wstETH. This development lets consumers bypass the formerly required Ethereum mainnet Transfers. The latest functionality is named Direct Staking benefits from the Programmable Token Transfers of CCIP. With this, it permits consumers to carry out $ETH staking on L2 networks. They can stake straight via interfaces such as Interport, OpenOcean, and XSwap. This improves the convenience of access and minimizes transfer costs.
The cross-chain programmability of CCIP eliminates the friction conventionally present in the acquisition of LSTs in the case of L2 networks. Consumers do not require enduring the multi-step procedure of bridging $ETH tokens to Ethereum. On the other hand, CCIP allows $ETH staking on L2s while a smart contract handles the backend Ethereum staking. The process additionally leverages Lido’s addition of a liquidity pool mechanism. It enables consumers to rapidly get the wstETH tokens at a rate mirroring the staking yield of Ethereum.
The Development Aligns with Chainlink’s Wider Objective to Expand Cross-Chain Functionalities in DeFi
According to Chainlink, CCIP’s integration with the staking services of Lido offers analogous staking capabilities for the rest of the protocols such as EigenPie, StakeStone, and Frax. Thus this move focuses on the expansion of staking options as well as token support. The respective expansion aligns with the wider mission of Chainlink to advance cross-chain capabilities within the DeFi sector.
Source: https://blockchainreporter.net/chainlink-ccip-powers-cross-chain-eth-staking-for-lido-consumers-on-l2-networks/