Crypto Quill

The Wormhole protocol, a leading interoperability platform, has announced the addition of native ETH and Lido wstETH transfer software to its system. This new feature, built on top of Uniswap v3, will allow users to move ETH and wstETH across various EVM-based networks with ease and efficiency.

What is Wormhole and why is it important?

Wormhole is a decentralized protocol that enables scalable bridges and multichain applications. It allows developers to connect with liquidity and users across over thirty popular blockchain networks, creating applications for DeFi, NFTs, governance, and more. Wormhole leverages the power of Solana, a high-performance blockchain, to provide fast and secure cross-chain transfers.

Wormhole is trusted by prominent projects such as Circle and Uniswap, and has facilitated the transfer of over $35 billion through the use of over 900 million cross-chain messages. Wormhole aims to create a unified and interoperable ecosystem for the crypto space, where users can seamlessly access the best features and opportunities across different chains.

How does the new feature work and what are the benefits?

The new feature that Wormhole has introduced is the native ETH and wstETH transfer software, which enables users to transfer ETH and wstETH between different EVM-based networks without wrapping or unwrapping them. ETH and wstETH are two forms of Ethereum’s native token, where wstETH is a staked version of ETH that accrues staking rewards from Lido, a liquid staking protocol.

The native ETH and wstETH transfer software is based on Uniswap v3, a popular decentralized exchange that offers concentrated liquidity pools and flexible fee structures. The software works as follows:

• Each blockchain has a single xETH/wETH pool that facilitates swaps between wrapped (local) ether and xETH (wormhole ether).
• Users can deposit their ETH or wstETH into the pool and receive xETH in return, which can be transferred to another chain via Wormhole.
• On the destination chain, users can swap their xETH for the local wrapped ether, and then unwrap it to get the native ETH or wstETH.
• The transfers are gas-free on the destination chain, and users only pay the Uniswap fees and the Wormhole fees on the source chain.
• The Uniswap fees are determined by the liquidity providers (LPs), who can choose their own fee tiers and liquidity ranges. The Wormhole fees are fixed at 0.05% of the transferred amount.

The benefits of this feature are:

• Users can transfer ETH and wstETH across multiple chains without losing their native properties or functionalities. For example, wstETH holders can keep earning staking rewards while moving their tokens across different networks.
• Users can enjoy lower costs and higher liquidity than using other bridge solutions, as they only pay the Uniswap and Wormhole fees once, and avoid the gas fees on the destination chain.
• Users can access the best opportunities and services across different chains, such as yield farming, lending, borrowing, trading, and more, using their ETH and wstETH tokens.

Which chains are supported and what are the future plans?

As of launch, the native ETH and wstETH transfer software supports the following chains:

• Optimism, Base, BNB Chain, Avalanche, Polygon, and Ethereum for native-to-native ETH transfers.
• Ethereum, Arbitrum, Optimism, Polygon, and Base for native-to-native wstETH transfers.

Wormhole plans to add more chains and tokens to its native transfer software in the future, as well as expand its interoperability features to other domains such as NFTs and governance. Wormhole is also working on improving its user interface and user experience, as well as enhancing its security and reliability.

Wormhole is a pioneer in the field of cross-chain interoperability, and its native ETH and wstETH transfer software is a testament to its innovation and vision. By enabling users to move their ETH and wstETH across multiple chains with ease and efficiency, Wormhole is creating a more connected and inclusive crypto space.