Tuesday, January, 21, 2025

Chainlink Interoperability Expands Lido’s Staking Reach to Linea’s $1.9B DeFi Ecosystem

Chainlink
Picture of Anny Sam

Anny Sam

Anny is a skilled crypto writer, delivering clear, engaging content that simplifies complex blockchain concepts for a broad audience.
  • Lido expands Direct Staking to Linea, an Ethereum Layer-2 with $1.9 billion in TVL.
  • Users can now stake ETH and receive wstETH in one step through Chainlink CCIP.
  • The integration cuts costs, speeds up staking, and strengthens DeFi access on Linea.

Lido, in collaboration with Chainlink, has introduced Direct Staking on Linea, a key Ethereum Layer-2 network built for fast and low-cost transactions. This launch marks a new step in making ETH staking simpler, more secure, and more accessible across multiple chains.

Chainlink’s Cross-Chain Interoperability Protocol (CCIP) powers the feature, allowing users to stake ETH directly from Linea and receive wrapped staked ETH (wstETH) in a single smooth transaction. Until now, users had to move assets between networks to stake with Lido.

The new system eliminates such friction. ETH can be immediately bonded to wstETH within Linea’s system. Such an improvement helps in the universal uptake of liquid staking solutions and enhances the scope of Lido within the scaling ecosystem on the Ethereum network.

CCIP in the Chainlink network is essentially the integration of Lido’s Direct Staking on Linea. It enables token transfers on other chains plus the execution logic for an atomic transaction in a single transaction only. Therefore, with CCIP on Linea, direct staking on Linea is made possible without token bridging steps.

Lido supports two staking methods. In the first, users stake ETH through liquidity pools and instantly receive wstETH from a verified pool, while the system stakes their ETH on the Ethereum mainnet in the background.

The second kind is on-demand staking, where the ETH is directly sent to the Ethereum network for staking on the Lido platform before sending back wstETH to Linea’s wallets. Both approaches remain compatible with Lido’s core contracts for consistency’s sake. The system is also modular in nature to be extended to other L2s in the near future.

Linea Integrates wstETH to Boost DeFi Growth

The integration expands Linea’s thriving DeFi ecosystem by integrating wstETH natively into its ecosystem. Developers and users get direct access to Lido’s liquid staking solution without ever having to leave Linea’s ecosystem.

Chainlink’s Data Feeds also ensure correct pricing for wstETH on any network, with Chainlink Automation handling any liquidity and batching-related operations for efficient staking. Linea’s zkEVM environment with its increasing usage is an excellent ecosystem for scalable staking implementations.

As multiple dApps integrate Direct Staking, wstETH’s footprint expands deeper into the Layer-2 space. This move strengthens interoperability across Ethereum’s ecosystem and opens a new era of frictionless staking powered by Lido and Chainlink.

Related Reading: Arthur Hayes Predicts Bitcoin to Skyrocket to $1 Million with Japan’s Economic Shift

How would you rate your experience?

Related Posts

Share on Social Media
Scroll to Top