{"id":183653,"date":"2023-10-30T16:47:44","date_gmt":"2023-10-30T11:17:44","guid":{"rendered":"https:\/\/dripp.zone\/news\/?p=183653"},"modified":"2023-10-30T16:47:44","modified_gmt":"2023-10-30T11:17:44","slug":"bridging-protocol-advocate-for-open-tech-standards-and-condemn-layerzero-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/bridging-protocol-advocate-for-open-tech-standards-and-condemn-layerzero-crypto-news\/","title":{"rendered":"Bridging Protocol Advocate For Open Tech Standards And Condemn LayerZero &#8211; Crypto News"},"content":{"rendered":"<p><\/p>\n<p>Bridging teams back ERC-7281 to mitigate risks from proprietary cross-chain protocols.<\/p>\n<div>\n<p>Connext teamed up with other cross-chain bridging protocols to condemn LayerZero for deploying a bridge for stETH without support from the token\u2019s issuer, Lido.<\/p>\n<p>The Oct. 27 tweet from Connext criticized LayerZero for <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/thedefiant.io\/layerzero-deploys-steth-bridge-without-approval-from-lido-governance\">deploying<\/a> a \u201cproprietary representation\u201d of Lido\u2019s stETH token on the Avalanche, BNB Chain, and Scroll networks without support from Lido DAO last week.<\/p>\n<p>\u201cToken-issuing DAOs should be the ultimate arbiters of what version of their asset is canonical on a given chain,\u201d the statement <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/ConnextNetwork\/status\/1717953446475620379\/photo\/1\">said<\/a>. \u201cA lack of DAO-led social consensus around the canonical representation of a given asset drives fragmentation.\u201d<\/p>\n<p>The document was co-signed by ChainSafe, Li.Fi, Sygma, Celer, Across, Socket, Hashi, and Router.<\/p>\n<p><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/uncx.network\/?utm_source=banner&amp;utm_medium=defiant\" class=\"h-[58px] noprose mx-auto mb-8 mt-6 block w-[320px] overflow-hidden lg:hidden\"><\/a><\/p>\n<h2>LayerZero controversy<\/h2>\n<p>On Oct. 26, LayerZero posted a <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/research.lido.fi\/t\/wsteth-on-avalanche-and-bnb-and-ownership-acceptance-by-lido-dao\/5749\">proposa<\/a>l to Lido\u2019s governance forum pitching the launch of a cross-chain bridge for its liquid staking token, stETH, leveraging LayerZero\u2019s Omnichain Fungible Token (OFT) standard.<\/p>\n<p>However, on the same day, LayerZero also <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/LayerZero_Labs\/status\/1717224886362689695\">announced<\/a> that the stETH bridge was live and ready for use via its social channels that same day \u2014 attracting criticism from prominent voices in the web3 community.<\/p>\n<p>Onlookers <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/litocoen\/status\/1717428071131971624\">slammed<\/a> LayerZero for front-running Lido\u2019s governance process, despite early discussions yielding significant opposition to the proposal due to <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/thedefiant.io\/vitalik-eth-cross-chain-bridges-security\">security<\/a> and liquidity fragmentation concerns.<\/p>\n<h2>Bridging standards<\/h2>\n<p>LayerZero facilitates cross-chain transfers between Ethereum Virtual Machine (EVM)-compatible chains using its OFT standard.<\/p>\n<p>OFT enables cross-chain transactions by minting tokens on a destination chain while simultaneously destroying the tokens on the chain the transfer was sent from. The system also results in the original asset represented by LayerZero\u2019s OFTs becoming locked in the bridge\u2019s smart contracts.<\/p>\n<div class=\"relative flex items-center gap-2 rounded-md bg-[#191919] p-2 my-4 lg:hidden\">\n<div class=\"relative group  flex w-max items-center gap-2  p-2 text-sm text-white mx-auto\"><strong class=\"whitespace-nowrap w-min sm:w-auto bg-gradient-to-r from-[#9FF9D2] to-[#DB9FF9] bg-clip-text text-transparent\">DeFi Alpha<\/strong><span class=\"whitespace-nowrap  w-min sm:w-auto border-l border-white pl-1 lg:hidden\">Premium Content<\/span><\/p>\n<div class=\"tooltip font-heading shadow-cta absolute hidden lg:visible left-6 z-10 -top-[80px] w-max max-w-xs translate-y-full flex-col rounded-lg bg-[#EEEEF4] p-3 text-left text-xs text-black group-hover:flex lg:left-auto lg:right-4\">Looking for Alpha? Become a premium member of The Defiant and join our DeFi Alpha community.<\/p>\n<ul class=\"list-inside list-disc\">\n<li>DeFi Daily | Weekdays<\/li>\n<li>DeFi Alpha Letter | Weekly<\/li>\n<li>Defiant Podcast Transcript | Weekly<\/li>\n<li>Inbox Dump | Saturday<\/li>\n<li>Weekly Recap | Sunday<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<p><a rel=\"nofollow noopener\" target=\"_blank\" href=\"http:\/\/thedefiant.io\/go-premium#pricing\" class=\"disabled:bg-cta-disabled-background disabled:text-cta-disabled-text rounded font-semibold border-cta-primary-border bg-cta-primary-background text-cta-primary-text hover:border-cta-primary-border-hover hover:bg-cta-primary-background-hover ml-auto block p-2 text-center text-sm !text-black !no-underline shadow-newButton\">Start for free<\/a><\/div>\n<p>In their joint statement, Connext and company argue that \u201cvendor-locked proprietary standards\u201d should not underpin cross-chain bridging protocols, asserting that the locking mechanism creates systemic risks for asset issuers and tokenholders.<\/p>\n<p>\u201cWhile marketed as a standard, OFTs and other provider-specific systems are fundamentally owned by the bridges that implement them,\u201d the statement said. \u201cTokens issued via proprietary standards remain forever tied to the security model of the issuing bridge. Lock-ins discourage active iteration on security\u2026 Bridges have suffered over $2B worth of hacks over the past two years as a result of these systemic risks.\u201d<\/p>\n<p>To remedy the situation, the manifesto calls for the adoption of open and public technology standards and the elimination of lock-in mechanisms. The statement offers a modified version of <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/ethereum-magicians.org\/t\/erc-7281-sovereign-bridged-tokens\/14979\">EIP-7281<\/a> as one practical solution.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Bridging teams back ERC-7281 to mitigate risks from proprietary cross-chain protocols. Connext teamed up with other cross-chain bridging protocols to condemn LayerZero for deploying a bridge for stETH without support from the token\u2019s issuer, Lido. The Oct. 27 tweet from Connext criticized LayerZero for deploying a \u201cproprietary representation\u201d of Lido\u2019s stETH token on the Avalanche, [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":131226,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[274,273,272,244,266,271,268,270,269,267],"class_list":["post-183653","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-de-fi","tag-crypto-finance","tag-decentralized-finance","tag-liquidity","tag-metamask","tag-pancake","tag-slippage","tag-sushiswap","tag-tronlink","tag-trust-wallet","tag-uniswap"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/183653","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=183653"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/183653\/revisions"}],"predecessor-version":[{"id":183655,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/183653\/revisions\/183655"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/131226"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=183653"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=183653"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=183653"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}