RFP: wstETH on BNB

[DeFiYaco]

With the Snapshot vote live, the NEW summed up some advantages and considerations for different voting options.

Disclaimer

All of the proposals meet baseline expectations and requirements (e.g. avoiding vendor lock-in and minimizing centralization risks).

The following list of advantages and considerations is opinionated, highlights various aspects, and constitutes/attempts to proclaim neither the best nor the worst possible options.

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LayerZero

Proposal link:

LayerZero: Implementation for wstETH on BNB Chain and Ownership Acceptance by Lido DAO

Introduction We’re excited to see and engage with the open RFP for wstETH on BNB. Discussion, knowledge-gathering, and feedback cycles around Lido’s cross-chain expansion has been robust and encouraging to all of us building in the interoperability space. LayerZero Labs submits this proposal to seek the Lido DAO’s formal recognition of this deployed wstETH token on BNB Chain as canonical. Should this proposal receive positive community feedback and DAO approval, LayerZero Labs will transfer own…

Advantages:

• Commitment to trustless ZK technology for validation
• The Pre-Crime module for monitoring and alerting
• The world’s largest bug bounty program
• Proven track record (2 years, $30B+ value transferred)
• Clear improvement from both the previous assessment by Uniswap and the previous proposal for Lido
• A member of BNB Chain DeFi League

Considerations:

• Recently proposed LayerZero V2 addressing centralization concerns about Oracles and Relayers appeared quite recently for in-depth analysis and production trail
• The Pre-Crime module is proprietary and might introduce additional exposure to censorship risks
• Mentioned zk technology is green or hasn’t developed yet (e.g. zkOracle by the =nil; Foundation)
• OFT impl and Endpoints introduce a dependency on the LZ code licensed with LZBL-1.2 (not an open-source license)

Wormhole x Axelar

Proposal link:

Wormhole x Axelar | Lido Bridge: Implementation for wstETH on BNB Chain

Introduction In response to the Lido community’s call for a secure and transparent expansion of wstETH to the BNB chain, Axelar Inc. and Wormhole present a unified proposal that leverages the expertise and technology of Wormhole, Axelar network, and the Lido DAO. This proposal aims to establish a multi-bridge deployment that adheres to Lido’s governance processes, ensures the DAO’s ownership and control, provides vendor flexibility, and addresses network-specific considerations. This proposal is…

Advantages:

• Experience with Lido-related bridging projects (bETH, Neutron, Solana, cross-chain liquidity hops, etc.)

• Both providers were recommended by the Uniswap Bridge Assessment Committee (UBAC)

• Decent Bug Bounty programs by Wormhole and Axelar

• Open-source Apache 2 license

• Abstracts away endpoints making it possible to onboard new bridge providers through adapters, starting with two bridge providers

• Commitment to the Lido DAO governance plug-ins and forwarding

• Collaboration between the two bridge providers, rather than competition

Considerations:

• Newly developed and to-be-audited interface contracts
• Doesn’t follow any of the proposed cross-chain token standards (e.g. xERC-20)
• The governance forwarding implementation isn’t presented

Chainlink CCIP

Proposal link:

Deploy wstETH to BNB Chain Using Chainlink CCIP

Deploy wstETH to BNB Chain Using Chainlink CCIP Abstract This proposal aims to make Lido’s Wrapped Staked Ether (wstETH) token available on BNB Chain by using the Chainlink Cross-Chain Interoperability Protocol (CCIP). CCIP offers the highest level of cross-chain security for Lido by utilizing multiple Decentralized Oracle Networks (DONs), an independent Risk Management Network, high-quality node operators, and additional security features such as rate limiting. This proposal presents a balance…

Advantages:

• Re-using battle-tested DON for the validation layer having the strongest DeFi integration case
• Experience with Lido-related bridging projects (exchange rate feeds and price feeds)
• Clearly defined architecture and roadmap
• A member of BNB Chain DeFi League
• Trusted by Circle’s CCTP for USDC cross-chain transfers

Considerations:

• Limited exposure to 3rd parties research — reports haven’t been published yet, e.g. hasn’t been assessed yet by the UBAC

• Dependency on the BSL License in the code and legal disclaimers

• BugBounty terms are not usual ‘Unlike other bug bounty programs on Immunefi, all bug report submissions, including associated vulnerabilities, become the exclusive property of Chainlink Labs‘

• Unusual fees model with LINK token, surcharge for other assets, and subject to change

Hyperlane & HadronLabs

Proposal link:

Aggregation/Multi-Bridge for wstETH on BNB

Joint proposal by Hyperlane and Hadron Labs core teams TL;DR Hyperlane features a modular security stack designed to offer custom security and minimize reliance on single points of failure. Hadron Labs from Neutron has recognized this for their aggregation for wstETH for the Cosmos. Hyperlane’s Aggregation Interchain Security Module (ISM) enables the Lido DAO to seamlessly integrate various bridges for wstETH on BNB like Wormhole and Axelar. Our joint proposal aims to solve for the issue of l…

Advantages:

• Compatibility with the upcoming multibridge wstETH on Neutron design
• Experience with Lido on X projects
• Bridge aggregation focused approach

Considerations:

• The mentioned wstETH on Neutron design hasn’t shipped yet on mainnet
• Hyperlane endpoints might pose vendor lock-in risks
• A few development artifacts presented: not possible to assess license and code quality
• It was recommended that Hyperlane become more battle-tested for further aggregated evaluation