• Latest
  • Trending
9 protocols criticize LayerZero’s wstETH token, claiming it’s ‘proprietary’

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

October 28, 2023
Altcoins Lead Post-Fed Crypto Rally as Risk Appetite Increases – Yahoo Finance

XRP, Shiba Inu, and More: Here are Top 6 Altcoins Priced Below $1 to Watch for Next Bull Run – The Crypto Basic

October 31, 2023
Altcoins Lead Post-Fed Crypto Rally as Risk Appetite Increases – Yahoo Finance

Zodia Custody expands in Hong Kong, receives VASP in Ireland … – Tekedia

October 31, 2023
Altcoins Lead Post-Fed Crypto Rally as Risk Appetite Increases – Yahoo Finance

Why Altcoins and Crypto Stocks Were Flying High Today – The Motley Fool

October 30, 2023
Altcoins Lead Post-Fed Crypto Rally as Risk Appetite Increases – Yahoo Finance

Embracing the crypto evolution: Institutional adaptation and the … – Arabian Business

October 30, 2023
Altcoins Lead Post-Fed Crypto Rally as Risk Appetite Increases – Yahoo Finance

Acala Spikes 5% on Binance's New Altcoin Pairs News — Can ACA … – CCN.com

October 30, 2023
Altcoins Lead Post-Fed Crypto Rally as Risk Appetite Increases – Yahoo Finance

Bitcoin Spark, BNB, and Toncoin: Price Outlook in Upcoming Bull Run – CryptoPotato

October 30, 2023
Altcoins Lead Post-Fed Crypto Rally as Risk Appetite Increases – Yahoo Finance

Crypto Price Today: Bitcoin holds $34,000; Ethereum slips below $1,800; most altcoins up – Business Today

October 30, 2023
Altcoins Lead Post-Fed Crypto Rally as Risk Appetite Increases – Yahoo Finance

The Next Bull Market Is Approaching: Sparking Opportunities For … – CryptoPotato

October 30, 2023
Altcoins Lead Post-Fed Crypto Rally as Risk Appetite Increases – Yahoo Finance

Crypto Analyst Benjamin Cowen Says Fed Pivot and Altcoin Rallies Won’t Happen Until This Occurs – The Daily Hodl

October 29, 2023
Altcoins Lead Post-Fed Crypto Rally as Risk Appetite Increases – Yahoo Finance

Litecoin Pronóstico del Precio: LTC insinúa una corrección del 15% si se cumplen estas condiciones clave – FXStreet

October 29, 2023
Altcoins Lead Post-Fed Crypto Rally as Risk Appetite Increases – Yahoo Finance

Brazil's USDT adoption soars in 2023, makes up 80% of all crypto transactions – Cointelegraph

October 29, 2023
Altcoins Lead Post-Fed Crypto Rally as Risk Appetite Increases – Yahoo Finance

Can Presales Like Scorpion Casino Token Match the Historic … – NewsWatch

October 29, 2023
Sunday, May 18, 2025
EGROW ONLINE
  • Home
  • Cryptocurrency
  • Bitcoin
  • Ethereum
  • Blockchain
  • Altcoins
  • ADA
  • Litecoin
  • Dogecoin
  • ICO
  • Ripple
  • Market & Analysis
  • Videos
No Result
View All Result
EGROW ONLINE
No Result
View All Result

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

by admin
October 28, 2023
in Blockchain
0



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 Oct. 27 called the token’s standard “a vendor-locked proprietary standard,” claiming that it limits the freedom of token issuers.

Today, we’re announcing a unified call for
Open Bridge Standards
alongside @AcrossProtocol @CelerNetwork @ChainSafeth @buildwithsygma @lifiprotocol @SocketDotTech @routerprotocol and @hashialliance pic.twitter.com/D4CLw2lBD1

— Connext (@ConnextNetwork) October 27, 2023

The protocols claimed in their joint statement that LayerZero’s new token is “a proprietary representation of wstETH to Avalanche, BNB Chain, and Scroll without support from the Lido DAO [decentralized autonomous organization],” which is created by “provider-specific systems […] fundamentally owned by the bridges that implement them.” As a result, it creates “systemic risks for projects that can be tough to quantify,” they stated. The protocols advocated for the use of the xERC-20 token standard for bridging stETH instead of using LayerZero’s new token.

Lido Staked Ether (stETH) is a liquid staking derivative produced when a user deposits Ether (ETH) into the Lido protocol for staking. On Oct. 25, LayerZero launched a bridged 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.

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, the Lido DAO. In addition, both BNB Chain and LayerZero announced the token’s launch on X (formerly Twitter), and BNB Chain tagged the Lido development team in its announcement. Members of the Lido DAO later claimed that these actions were an attempt to mislead users into believing that the new token had support from the DAO.

On the same day that LayerZero launched wstETH, it proposed that the Lido DAO should approve the new token as the official version of stETH on the three new networks. It offered to transfer control of the token’s protocol to the Lido DAO, relinquishing LayerZero’s administration of it. In response, some Lido DAO members complained that this move was intended to create a fait accompli to pressure the DAO into passing the proposal when they otherwise wouldn’t have.

Related: LayerZero partners with Immunefi to launch $15M bug bounty

“There appears to have been a coordinated marketing effort between Avalanche, BNB, and LayerZero with a series of twitter posts and slick videos implying that the Lido DAO has already officially accepted the OFT standard,” Lido DAO member Hart Lambur posted to the forum, adding, “How is this possible when this is just a proposal?” 

Some members also argued that the new token could pose security issues. “Layer Zero is a super centralized option that exposes Ethereum’s main protocol to an unprecedented catastrophe,” Lido DAO member Scaloneta claimed, arguing that a hack in the protocol’s verification layer “would imply that infinite wsteth will be minted.”

Cointelegraph reached out to the LayerZero team for comment through Telegram and email. In response, it claimed that the wstETH token’s protocol is secure and decentralized, stating:

“The omnichain fungible-token (OFT) standard is a multiaudited, open-source set of reference contracts used by more than 75 projects to enable native, horizontally composable transfers between layer 1s and between layer 2s. More than $3 billion 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.”

In April, LayerZero raised over $120 million to help build more cross-chain functionality into the Web3 ecosystem and partnered with Radix to bring cross-chain functionality to the Radix Babylon network.

Update (Oct. 27, 8:36 pm UTC): This article has been updated to include a statement from LayerZero.



Source link

YOU MAY ALSO LIKE

What do the Long-Term Technicals Predict for Blockchain Cuties Universe Governance (BCUG) Sunday? – InvestorsObserver

SBF takes the stand, ‘buy Bitcoin’ searches soar and other news: Hodler’s Digest, Oct. 22-28

Tags: ClaimingcriticizeLayerZerosproprietaryprotocolsTokenwstETH
ShareTweetPin

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Search

No Result
View All Result

Recent News

Altcoins Lead Post-Fed Crypto Rally as Risk Appetite Increases – Yahoo Finance

XRP, Shiba Inu, and More: Here are Top 6 Altcoins Priced Below $1 to Watch for Next Bull Run – The Crypto Basic

October 31, 2023
Altcoins Lead Post-Fed Crypto Rally as Risk Appetite Increases – Yahoo Finance

Zodia Custody expands in Hong Kong, receives VASP in Ireland … – Tekedia

October 31, 2023
Altcoins Lead Post-Fed Crypto Rally as Risk Appetite Increases – Yahoo Finance

Why Altcoins and Crypto Stocks Were Flying High Today – The Motley Fool

October 30, 2023

Recent News

Altcoins Lead Post-Fed Crypto Rally as Risk Appetite Increases – Yahoo Finance

XRP, Shiba Inu, and More: Here are Top 6 Altcoins Priced Below $1 to Watch for Next Bull Run – The Crypto Basic

October 31, 2023
Altcoins Lead Post-Fed Crypto Rally as Risk Appetite Increases – Yahoo Finance

Zodia Custody expands in Hong Kong, receives VASP in Ireland … – Tekedia

October 31, 2023
Altcoins Lead Post-Fed Crypto Rally as Risk Appetite Increases – Yahoo Finance

Why Altcoins and Crypto Stocks Were Flying High Today – The Motley Fool

October 30, 2023

Categories

  • ADA
  • Altcoins
  • Bitcoin
  • Blockchain
  • Cryptocurrency
  • Dogecoin
  • Ethereum
  • ICO
  • Litecoin
  • Market & Analysis
  • Ripple
  • Videos

Follow Us

Find Via Tags

Ada Altcoin altcoins analysis Analyst Analytics Big Binance Bitcoin Blockchain BNB BTC Buy Cardano Coin Cointelegraph Crypto cryptocurrencies Cryptocurrency Digital DOGE Dogecoin ETH Ethereum finance Heres Insight Inu investors Litecoin LTC market Network news Prediction price Ripple SEC Shiba Solana Today Token Top week XRP
  • privacy And Policy
  • About Us

© 2020 Egrow Online

No Result
View All Result
  • Home
  • Cryptocurrency
  • Bitcoin
  • Ethereum
  • Blockchain
  • Altcoins
  • ADA
  • Litecoin
  • Dogecoin
  • ICO
  • Ripple
  • Market & Analysis
  • Videos

© 2020 Egrow Online