DeFi Bridge Contracts Lock Millions as Liquid Staking Expands on BNB Smart Chain: Finance Redefined Report

DeFi Bridge Contracts Lock Millions as Liquid Staking Expands on BNB Smart Chain: Finance Redefined Report

BNB Chain Announces Native Liquid Staking on BNB Smart Chain (BSC)

BNB Chain has announced that it will enable native liquid staking on its BNB Smart Chain as part of its strategy to shift the functions of the BNB Beacon Chain to BSC before shutting it down completely. The company expects the transition to be complete by June 2024.

This new feature is set to allow ecosystem participants to secure the network while keeping their assets liquid. While there’s no specific launch date, BNB Chain indicated that the rollout of native liquid staking will happen in April or May 2024.

Chainlink’s Cross-Chain Interoperability Protocol (CCIP) Now Generally Available

Chainlink has launched its Cross-Chain Interoperability Protocol (CCIP), a significant development that will enhance cross-chain connectivity. This new protocol allows developers to use CCIP without restrictions for cross-chain token transfers and smart contract messaging across multiple blockchain networks.

With CCIP, developers can send and trigger function calls on smart contracts deployed on other blockchains, increasing the interoperability of cross-chain smart contracts. According to Sergey Nazarov, co-founder of Chainlink, this will accelerate the development of cross-chain solutions.

EigenLayer Faces Potential Yield Crisis Amid Rapid Growth

EigenLayer, the largest restaking protocol on Ethereum by total value locked (TVL), might be heading toward a “major” yield crisis due to its rapid growth. Industry experts suggest that EigenLayer may be outgrowing its Actively Validated Services (AVS), potentially leading to a reduction in yields.

EigenLayer removed all limits on liquid staking tokens (LSTs) on April 16, which might have contributed to its rapid growth. When users stake LSTs through EigenLayer, they are automatically delegated to a node operator, which uses the funds to secure an AVS. However, the need for less staked Ether for security could create challenges in the future.

Millions in Assets Stuck in DeFi Bridge Contracts

Arkham Research has flagged several crypto whale wallets with assets ranging from six to seven figures stuck in various DeFi bridge contracts. These bridge protocols are often native contracts, requiring users to manually retrieve funds, which many have forgotten.

One of these wallets is linked to Ethereum co-founder Vitalik Buterin, with over $1 million in assets stuck for more than seven months. Another wallet linked to Coinbase has also been dormant for several months, with some wallets containing unclaimed assets for over two years. Arkham Research has reached out to these wallet owners to help retrieve the stuck funds.

DeFi Market Overview

Data from Cointelegraph Markets Pro and TradingView indicate a bearish trend among the top 100 DeFi tokens by market capitalization, with most trading in the red over the past week. Additionally, the total value locked in DeFi protocols has fallen below $100 billion, signaling a downturn in the market.

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