Cross-chain smart contract platform Neutron and interoperability protocol Axelar have been selected by the liquid staking project Lido Finance to launch its wrapped liquid staked ether (wstETH) token into the Cosmos ecosystem.
More than 30 Cosmos teams have expressed interest in integrating wstETH, according to a statement. Also, Neutron and Axelar have each committed 1% of their respective network genesis supply in token incentives to build liquidity for wstETH through DeFi applications within the Cosmos ecosystem.
“We are excited to be part of the effort to bring one of the biggest liquid staking tokens, Lido’s staked ether to the Cosmos ecosystem,” Neutron core contributor Avril Dutheil said. “The collaboration between Neutron, Axelar and the Lido DAO is a great example of how blockchain projects can come together to foster innovation and seamless interoperability.”
Once wstETH is deployed on Cosmos and cross-chain governance is established, Axelar and Neutron are expected to hand over the cross-chain deployment reins to the Lido DAO.
Lido’s staked ether is available as a rebasing token, stETH, whose total supply adjusts. Additionally, there’s a wrapped auto-compounding token, wstETH, which automatically reinvests the rewards earned and will be used for bridging via Neutron and Axelar to Cosmos.
Currently, Lido dominates the liquid staking market on Ethereum, holding approximately 70% of the market with $14 billion in total value locked (funds deposited), based on data from The Block’s dashboard. Among Lido’s most significant liquid staking competitors, Coinbase’s TVL stands at $2.2 billion, and Rocket Pool’s is at $1.7 billion.
Lido currently supports multiple blockchains for liquid staking: Ethereum, Polygon and Solana, according to its website. It also offers wstETH bridging on the OP Mainnet and Arbitrum Ethereum Layer 2 networks.
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