9 protocols criticize LayerZero’s 'wstETH' token, claiming it's 'proprietary'

  • 📰 Cointelegraph
  • ⏱ Reading Time:
  • 48 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 23%
  • Publisher: 51%

United States Headlines News

United States Latest News,United States Headlines

The wstETH token is a bridged version of Lido’s stETH, but hasn’t been approved by Lido DAO.

A new bridged token from cross-chain protocol LayerZero is drawing criticism from nine protocols throughout the Ethereum ecosystem. A joint statement from Connext, Chainsafe, Sygma, LiFi, Socket, Hashi, Across, Celer, and Router on October 27 called the token’s standard “a vendor-locked proprietary standard,” claiming that it limits the freedom of token issuers.

Since any protocol can create a bridged version of a token, LayerZero was able to launch wstETH without needing the approval of Lido’s governing body, LidoDAO. In addition, both BNB Chain and LayerZero announced the token’s launch on X , and BNB Chainthe Lido development team in its announcement. Members of LidoDAO later claimed that these actions were an attempt to mislead users into believing that the new token had support from the DAO.

“The omnichain fungible-token standard is a multi-audited, open source set of reference contracts used by more than 75 projects to enable native, horizontally composable transfers between L1s and between L2s. More than $3B in value has been transferred by contracts that have integrated OFT. LayerZero continued:"By design, developers always maintain the ability to permissionlessly select their validation layer and can include other bridges as part of the immutable LayerZero framework."

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 562. in US

United States Latest News, United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Cryptocurrencies Price Prediction: Optimism, Fetch.ai & Lido DAO — Asian Wrap 26 OctoberOptimism (OP) has been overly volatile over the past several months, with the price action oscillating in a wave-like motion. Momentum indicators have
Source: FXStreetNews - 🏆 14. / 72 Read more »

LayerZero proposes wstETH availability across Ethereum, Avalanche, BNB and ScrollLayerZero, a blockchain interoperability firm, proposed that Lido DAO integrate its wrapped stETH (wstETH) token to its Omichain Fungible Token (OFT)
Source: FXStreetNews - 🏆 14. / 72 Read more »

Lido DAO price could lose its 27% rally as whales sell a third of their 60 million LDO accumulationLido DAO price has capitalized on the Bitcoin rally to bring significant gains to its investors. However, one particular cohort might have enjoyed the
Source: FXStreetNews - 🏆 14. / 72 Read more »

Bitget Becomes One of the First Exchanges to List Tottenham Hotspur Fan Token (SPURS)Crypto exchange Bitget confirms SPURS listing in Innovation/Fan Token zones
Source: Utoday_en - 🏆 295. / 63 Read more »

AI Crypto Render Price Reacts to FTX's 974,000 RNDR Token Shift: DetailsSeveral crypto assets are currently trading in losses
Source: Utoday_en - 🏆 295. / 63 Read more »

The First Token on Uniswap Skyrockets to $5.5 Million Following Burn EventCrypto Blog
Source: Crypto_Potato - 🏆 568. / 51 Read more »