⚡ LayerZero Under Fire: 9 Protocols Express Discontent
posted 28 Oct 2023
LayerZero is facing criticism for its recently introduced wstETH token from nine different DeFi protocols, including Connext, Across, Celer, ChainSafe, Sygma, LiFi, Socket, Router, and Hashi. They have serious reservations about the asset, classifying it as a vendor-locked proprietary standard.
The release of the wstETH version by LayerZero for Avalanche, BNB Chain, and Scroll was done without previous coordination with Lido DAO, as has been pointed out.
These protocols have made their stance clear, asserting that this situation places restrictions on the freedom of token issuers and results in the creation of systemic risks. In contrast, they are championing the adoption of the xERC-20 standard to facilitate the movement of stETH tokens (a derivative of staked ETH) across various networks.
LayerZero, in response, is assuring users of the safety and decentralization of its protocol and indicating its readiness to hand over the governance of the wstETH token to Lido DAO.
The release of the wstETH version by LayerZero for Avalanche, BNB Chain, and Scroll was done without previous coordination with Lido DAO, as has been pointed out.
These protocols have made their stance clear, asserting that this situation places restrictions on the freedom of token issuers and results in the creation of systemic risks. In contrast, they are championing the adoption of the xERC-20 standard to facilitate the movement of stETH tokens (a derivative of staked ETH) across various networks.
LayerZero, in response, is assuring users of the safety and decentralization of its protocol and indicating its readiness to hand over the governance of the wstETH token to Lido DAO.
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