Chainlink, LI.FI, and Lido have collectively launched a new staking route that makes it easier for users to move from ETH to wrapped staked Ether (wstETH) on supported Ethereum Layer-2 networks.
LI.FI announced on Friday that a new route turns a long and complicated process into a much simpler one. Before this launch, a user holding ETH on Layer-2 chains like Arbitrum had two difficult options.
They could swap through a decentralized exchange, but that often came with high slippage. The other option was even longer. They had to bridge assets back to the Ethereum mainnet, stake through Lido, convert to wstETH, and then bridge the funds back to Arbitrum.
That process could take days and needed several wallet approvals. Also, each step added a new chance of delay or failure. Because of that, many users avoided staking altogether.
The new feature, however, removes a complex process that made cross-chain staking hard for regular users. Chainlink also confirmed the launch in a post on X, where it described the feature as one-click cross-chain wstETH staking.
“By eliminating the friction of app-hopping, DEX slippage, & bridge wait times, CCIP Direct Staking unlocks instant access to cross-chain yield,” Chainlink stated.
How the new staking route works
The new feature completes all the complex steps in the background. Therefore, the users do not have to do them manually. They just need to connect a wallet, select the one-click option, and sign the transaction once.
LI.FI works as the main interface that users see and interact with. It shows price quotes and provides a simple interface so users can complete the transaction easily.
Behind the scenes, Chainlink’s Cross-Chain Interoperability Protocol (CCIP) safely moves the assets between different blockchain networks.
At the same time, LI.FI’s routing system finds the best and fastest path for the transaction. Then Lido stakes the ETH and sends wstETH directly to the user on Arbitrum. Because everything happens in the background, the process now takes minutes instead of days.
Chainlink Automation also helps keep liquidity pools balanced. This is important because it ensures users receive nearly the same staking rate as they would on Ethereum mainnet.
All these parts work together to create a smooth and native staking experience on Layer-2 networks. “Three protocols, each best-in-class in their layer. One API call to use all of them together. This is how the next generation of DeFi gets built,” LI.FI said.
Chainlink’s infrastructure also adds an extra layer of security to the process. The company said its system has already helped secure more than $28.6 trillion in transaction value across different networks.
CCIP is designed to keep validation separate from execution. It means that if one part of the process fails, user funds are less likely to get stuck and can still be recovered.
That design helps reduce risk during cross-chain transfers. For new users, that added safety is just as important as speed and convenience.
What users gain from this launch
This integration gives Layer-2 users easier access to Lido’s liquid staking token without leaving their network.
The token, called wstETH, allows users to keep earning staking rewards while still using their assets in decentralized finance. For example, they can use wstETH as collateral, trade it, or move it across other DeFi platforms. At the same time, the ETH behind it continues to earn yield.
The feature is now live through the LI.FI API and the Jumper Earn platform. It also works with popular wallets such as MetaMask, Rabby, and Phantom.
For developers, the company said the route is available through the LI.FI API, which means apps can add the feature without building the full cross-chain staking flow from scratch.
Lido remains the largest liquid staking protocol, with more than $20 billion in total value locked. Demand for staked ETH has also remained strong across different market conditions.
By making wstETH easier to access on Layer-2 networks, Chainlink, LI.FI, and Lido are trying to bring more users into Ethereum staking.
Chainlink has also been expanding its role in tokenised finance through other recent partnerships. Recently, FinChain has integrated Chainlink infrastructure to support its digital finance products in Asia.
Chainlink is already involved in tokenization-related projects with major institutions and market infrastructure providers, including SWIFT, UBS, SBI, J.P. Morgan, Mastercard, Fidelity International, DTCC, ANZ, Euroclear, and Brazil’s central bank.