10 months ago
Connext, Chainsafe, Sygma, LiFi, Socket, Hashi, Across, Celer, and Router issued a associated connection criticizing the caller token.
A caller bridged token from cross-chain protocol LayerZero is drafting disapproval from 9 protocols passim the Ethereum ecosystem. A associated connection from Connext, Chainsafe, Sygma, LiFi, Socket, Hashi, Across, Celer, and Router connected October 27 called the token’s modular “a vendor-locked proprietary standard,” claiming that it limits the state of token issuers.
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The protocols claimed successful their associated connection that LayerZero’s caller token is “a proprietary practice of wstETH to Avalanche, BNB Chain, and Scroll without enactment from the Lido DAO [decentralized autonomous organization],” which is created by “provider-specific systems […] fundamentally owned by the bridges that instrumentality them.” As a result, it creates “systemic risks for projects that tin beryllium pugnacious to quantify,” they stated. The protocols advocated for the use of the xERC-20 token standard for bridging stETH alternatively of utilizing LayerZero’s caller token.
Lido Staked Ether (stETH) is simply a liquid staking derivative produced erstwhile a idiosyncratic deposits Ether (ETH) into the Lido protocol for staking. On October 25, LayerZero launched a bridged mentation of stETH, called "Wrapped Staked Ether (wstETH)" connected BNB Chain, Avalanche, and Scroll. Prior to this launch, stETH was not disposable connected these 3 networks.
Since immoderate protocol tin make a bridged mentation of a token, LayerZero was capable to motorboat wstETH without needing the support of Lido’s governing body, LidoDAO. In addition, some BNB Chain and LayerZero announced the token’s motorboat connected X (formerly Twitter), and BNB Chain tagged the Lido improvement squad successful its announcement. Members of LidoDAO aboriginal claimed that these actions were an effort to mislead users into believing that the caller token had enactment from the DAO.
On the aforesaid time that LayerZero launched wstETH, they proposed that LidoDAO should o.k. the caller token arsenic the authoritative mentation of stETH connected the 3 caller networks. They offered to transportation power of the token’s protocol to LidoDAO, relinquishing LayerZero’s medication of it. In response, immoderate LidoDAO members complained that this determination was intended to make a fait accompli to unit the DAO into passing the connection erstwhile they different wouldn’t have.
Related: LayerZero partners with Immunefi to motorboat $15M bug bounty
“There appears to person been a coordinated selling effort betwixt Avalanche, BNB, and LayerZero with a bid of twitter posts and slick videos implying that LidoDAO has already officially accepted the OFT standard,” LidoDAO subordinate Hart Lambur posted to the forum, adding “How is this imaginable erstwhile this is conscionable a proposal?”
Some members besides argued that the caller token could airs information issues. “Layer Zero is simply a ace centralized enactment that exposes Ethereum’s main protocol to an unprecedented catastrophe,” LidoDAO subordinate Scaloneta claimed, arguing that a hack successful the protocol’s verification furniture “would connote that infinite wsteth volition beryllium minted.”
Cointelegraph reached retired to the LayerZero squad for remark done Telegram and email, but did not person a effect by the clip of publication. In April, LayerZero raised implicit $120 million to assistance physique much cross-chain functionality into the Web3 ecosystem and partnered with Radix to bring cross-chain functionality to the Radix Babylon network.
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