TechFlow news, Axelar and Hadron Labs have recently proposed a new initiative to bring wstETH into the Cosmos ecosystem. This bridging solution aims not only to gradually transfer ownership of the bridging mechanism to Lido DAO's Aragon smart contract but also to prevent potential issues arising from uncoordinated bridges within the Cosmos ecosystem.
To address these concerns, contributors from the Lido protocol in partnership with Hadron Labs (a core contributor to Neutron), have executed the following steps:
- Negotiated with Osmosis and Injective to pause uncoordinated bridging attempts;
- Identified bridge providers and solicited proposals;
- Evaluated bridge providers and collected results;
- Engaged DeFi projects to develop an integration roadmap;
- Collaboratively defined redlines and specifications for a multi-bridge solution;
- Secured economic commitments from bridge providers.
The proposal outlines the outcomes of this process, including the deployment of an initial bridging mechanism designed to meet urgent ecosystem needs while preserving Lido DAO's security and flexibility.
The initial bridging mechanism relies on the established bridge provider Axelar and an "encapsulation contract," which establishes a single naming standard for wstETH in Cosmos—regardless of the backend mechanism used to bridge assets across ecosystems. This contract will initially be governed by a group of multiple Cosmos ecosystem contributors, and ownership will later transition to Lido DAO’s Aragon smart contract on Ethereum once cross-chain governance is implemented.
The "encapsulation contract" also allows bridge providers to be added, removed, or replaced according to Lido DAO’s requirements, ensuring compliance with its security standards and long-term bridging vision, while avoiding liquidity fragmentation and technical debt.
Hadron Labs has proposed the following deployment timeline:
- September 2023: Launch of the initial bridge;
- First half of 2024: Implementation of cross-chain governance and multi-bridge support.
The initial bridge implementation consists of two key components: the Axelar Network, a general-purpose interoperability platform, and a dedicated encapsulation contract deployed on Neutron, a chain within the Cosmos ecosystem.
