In a groundbreaking move for the decentralized finance sector, Lido Finance has tapped into the capabilities of the cross-chain smart contract platform, Neutron, and interoperability protocol, Axelar. Their collective mission? To introduce Lido's wrapped liquid staked ether (wstETH) token to the burgeoning Cosmos ecosystem.
A significant number of teams within Cosmos, exceeding 30, have shown keen interest in integrating with wstETH, as revealed in a recent statement. Bolstering this initiative, both Neutron and Axelar are setting aside 1% of their initial network genesis supply. This commitment is geared towards creating liquidity for wstETH through the varied DeFi applications embedded within the Cosmos landscape.
Expressing enthusiasm for this collaboration, Neutron's core contributor, Avril Dutheil remarked, “This partnership encapsulates the essence of blockchain innovation and the power of interoperability. With Lido's staked ether entering the Cosmos realm, we're showcasing how collective efforts can lead to industry evolution.” Echoing this sentiment, Sergey Gorbunov, Axelar's co-founder, added, “The integration of the market's leading liquid staking token will be bolstered by AXL and augmented by comprehensive interoperability.”
Following the successful deployment of wstETH on Cosmos and the subsequent establishment of cross-chain governance, it's anticipated that Neutron and Axelar will entrust the Lido DAO with the task of overseeing cross-chain deployments.
Lido Finance's prowess in liquid staking is undeniable. Their solution empowers users to harness liquidity for their staked assets. This unlocked capital can then be seamlessly channeled into a myriad of DeFi applications, transformed into a liquid staking derivative token.
Within Lido’s suite of offerings, the staked ether is presented as a dynamic rebasing token, stETH. Concurrently, an auto-compounding token variant, wstETH, stands ready to bridge to Cosmos via Neutron and Axelar's infrastructures. This token ensures automatic reinvestment of accrued rewards.
