LayerZero, a blockchain infrastructure provider, has found itself in hot water with Lido DAO, the decentralized autonomous organization behind Lido, a popular Ethereum 2.0 staking protocol. It appears that LayerZero launched a stETH bridge last year without seeking permission from Lido DAO, which has left the community feeling a little miffed. As a response to this breach of protocol, Lido DAO has decided to endorse LayerZero’s rivals, Wormhole and Axelar, for their own crypto bridge solutions. It seems that Lido DAO is not taking this matter lightly and is ready to assert its authority. While LayerZero may have hoped to provide a valuable service to Lido users, it appears that their approach has backfired, and they now face the consequences of their actions.
The endorsement of Wormhole and Axelar by Lido DAO implies that these two projects are now favored as alternatives to LayerZero’s stETH bridge. Wormhole, a cross-chain bridge built on Ethereum, offers users the ability to bring their assets from other blockchains onto the Ethereum network. Axelar, on the other hand, is a decentralized network that aims to connect different blockchain ecosystems and enable seamless asset transfers across them. By endorsing these competitors, Lido DAO is essentially saying that LayerZero’s bridge is no longer the preferred option for Lido users.
This situation serves as a reminder that permissionless and decentralized protocols still require collaboration and consent from the communities they serve. Without proper communication and agreement, even well-intentioned initiatives can cause friction and lead to unintended consequences. As LayerZero learns the hard way, it’s crucial to seek permission and work closely with the DAOs and communities involved in order to avoid backlash. In the end, it’s clear that Lido DAO is not one to be trifled with, and their response serves as a reminder of the power and influence that DAOs hold in the crypto space.
