Stake DAO Integrates Chainlink CCIP To Unlock Cross-Chain SDT Transfers

Stake DAO is excited to announce that it has integrated Chainlink CCIP — the industry standard for secure cross-chain interoperability — across the Arbitrum, BNB Chain, and Ethereum mainnets. Stake DAO is leveraging CCIP’s Simplified Token Transfer capabilities to facilitate cross-chain transfers of SDT, using the lock and mint mechanism for transfers between Ethereum and Arbitrum and Ethereum and BNB Chain, and the burn and mint mechanism for transfers from BNB Chain to Arbitrum.

Stake DAO implemented CCIP as its preferred interoperability solution because Chainlink has the most proven track record of maintaining the highest standard of security and reliability in the Web3 industry. Furthermore, CCIP is backed by the Risk Management Network — a separate, independent network that continually monitors and verifies cross-chain operations for suspicious activity. This additional layer of security is particularly important given historical industry exploits and the billions in user funds lost due to insecure and unreliable cross-chain infrastructure.

Stake DAO, a non-custodial liquid staking platform focused on governance tokens, is bringing SDT to different chains, making its ecosystem more accessible, which will help liquid staking in DeFi governance grow faster.

This initial move enables Stake DAO to extend Liquid Lockers across different blockchains, starting with the CAKE Liquid Locker on PancakeSwap for the BNB chain, launched a few months back. Adding SDT to multiple chains will introduce new features to the locker, like the veSDT boost, in the future.

To help secure its cross-chain SDT transfer, Stake DAO needed access to a highly secure and reliable interoperability solution. It integrated Chainlink CCIP because it provides a multitude of important benefits and features, such as:

• Time-tested security and reliability — CCIP’s consensus and interoperability layer is powered by Chainlink decentralized oracle networks, which have already secured tens of billions of dollars for smart contracts and enabled over $9 trillion in onchain transaction value. CCIP also features additional layers of protection and reliability via the Risk Management Network and Smart Execution.
• Secure Token Transfers — CCIP features a plug-and-play solution consisting of audited token pool contracts that handle the complexity of burning and minting or locking and minting tokens across chains. CCIP Token Transfers also have additional security features like Rate Limits, and enable ecosystem partners to easily build new capabilities around a supported token via a single CCIP interface.
• Programmable Token Transfers — CCIP messages are programmable, meaning token transfers and arbitrary data transfers can be one atomic transaction. This enables instructions to be passed in the data payload regarding what to do with the tokens once they arrive at the destination chain.
• Future-proof — CCIP is built to support continuous updates, such as the integration of new blockchains, the introduction of advanced functionalities, and the addition of other defense-in-depth approaches to security. Thus, integrating CCIP eliminates future switching costs should new cross-chain functionalities be required.

“We are excited to see Stake DAO integrating the industry standard Chainlink CCIP to power cross-chain transfers of SDT. By making SDT transfers seamless and secure, users across the many chains can more easily participate in the Stake DAO ecosystem.” –Hubert — Executive at StakeDAO Association

Useful Stake DAO links:

• Our Website: https://stakedao.org/
• Our Twitter: https://twitter.com/StakeDAOHQ
• Our Public Community Telegram Channel: https://t.me/StakedaoHQ
• Our Medium Articles: https://stakedaohq.medium.com/