wstETH, a new bridge token from LayerZero, is being criticized by nine protocols across the Ethereum ecosystem, according to a joint statement from Connext, Chainsafe, Sygma, LiFi, Socket, Hashi, Across, Celer, and Router on October 27, calling out the token standards. It is considered “a vendor-locked proprietary standard” and is believed to limit the freedom of token issuers.
In a joint statement, it was stated that LayerZero’s new token is a “unilateral bridge deployment of wstETH to Avalanche, BNB Chain, and Scroll without support from the Lido DAO. [องค์กรอิสระแบบกระจายอำนาจ] which was created by As a result, it creates “systemic risks for projects that are difficult to quantify,” and the protocol also encourages the use of the xERC-20 token standard for bridge stETH rather than new tokens. of LayerZero
Lido Staked Ether (stETH) is a liquid staking derivative that occurs when users deposit Ether (ETH) into the Lido protocol for staking. On October 25, LayerZero launched a bridge version of stETH called Wrapped Staked Ether (wstETH). ) on BNB Chain, Avalanche, and Scroll. Prior to this launch, stETH was not available on these three networks.
And because any protocol can create a bridge version of the token, LayerZero can launch wstETH without approval from the Lido DAO, Lido’s governing body. Additionally, both BNB Chain and LayerZero made the announcement on X. (formerly Twitter) and hasTaggedThe Lido development team also included in the announcement, with Lido DAO members later claiming that These actions are an attempt to mislead users into believing that the new token is backed by the DAO.
On the same day that LayerZero launched wstETH,offerthat the Lido DAO should approve the new token as the official version of stETH on the three new networks; And it has been proposed to transfer control of the token’s protocol to the Lido DAO, leaving oversight from LayerZero, which some Lido DAO members have complained that this move aims to create.successTo pressure the DAO to pass proposals when they do not have any
“There appears to be an effort between Avalanche, BNB and LayerZero, with Twitter posts and videos hinting that the Lido DAO has officially accepted the OFT standard,” Lido DAO member Hart Lambur posted on Twitter.ORum, which “How can this be possible when this is just a proposal?”
Some members also argued that the new token could pose security issues. “Layer Zero is super centralized, exposing Ethereum’s core protocol to unprecedented disasters.”
The LayerZero team claims that the wstETH token’s protocol is secure and decentralized, stating:
“The open source Omnichain fungible-token (OFT) standard is used by more than 75 projects to enable native transfers between Layer 1 and between Layer 2, and more than $3 billion has been transferred by contract. that integrated with OFT”
refer : cointelegraph.com
picture finance.yahoo.com
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