Lido’s Staked Ether Tokens Can Soon Be Used on Cosmos, IBC Blockchains

Lido is the leading provider of liquid-staking solutions and its staking token, stETH, has a $13.8 billion market capitalization.

AccessTimeIconSep 14, 2023 at 1:00 p.m. UTC

Ether staking giant Lido will work with two Cosmos blockchain ecosystem projects to bridge its staked ether (stETH) tokens to the Cosmos network, in a step that could see the transfer of millions of dollars in liquidity between the two blockchains.

Liquid staking has become a popular way for investors to earn yields on their digital assets, making it one of the largest decentralized finance (DeFi) sectors with $16 billion of value combined, per data from DefiLlama. Liquid staking platforms, including Lido, allow users to keep their locked-up tokens liquid with a derivative token that can be used for lending and borrowing.

Lido’s stETH has a $13.8 billion market capitalization, and the tokens are available in two types: a rebasing token, stETH, and a wrapped, auto-compounding token, wstETH, which will be used to bridge to Cosmos.

Lido has picked cross-chain platform Neutron and full-stack development network Axelar for the bridging project, CoinDesk learned Thursday. Neutron and Axelar have each committed 1% of their respective token incentives to build liquidity for wrapped stETH and wstETH.

“We are excited to be part of the effort to bring one of the biggest liquid staking tokens, Lido’s staked ETH to the Cosmos ecosystem,” Avril Dutheil, core contributor to Neutron, said in a message to CoinDesk. “It is a reflection of the value of cross-chain support and our commitment to bringing liquidity and users to the Cosmos ecosystem.”

Once on Cosmos, the wstETH token can be used on several blockchains that are built on Cosmos’ Inter-Blockchain Communication (IBC) technology platform. These include Cosmos, Cronos, Sommelier, and major DeFi protocols such as Osmosis and dYdX.

Edited by Sandali Handagama.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Shaurya Malwa

Shaurya is the Deputy Managing Editor for the Data & Tokens team, focusing on decentralized finance, markets, on-chain data, and governance across all major and minor blockchains.

Read more about