Nine protocols in the Ethereum ecosystem, including Connext, Chainsafe, Sygma, LiFi, Socket, Hashi, Across, Celer, and Router, have issued a joint statement criticizing a new token from cross-chain protocol LayerZero. They claim that the token’s standard is a “vendor-locked proprietary standard” that limits the freedom of token issuers. The protocols advocate for the use of the xERC-20 token standard instead. LayerZero recently launched a bridged version of Lido Staked Ether (stETH) called Wrapped Staked Ether (wstETH) on BNB Chain, Avalanche, and Scroll without the approval of Lido’s governing body. Some members of the Lido DAO have raised concerns about the token’s security and accused LayerZero of attempting to mislead users. LayerZero has stated that the wstETH token’s protocol is secure and decentralized.
