LayerZero Faces Backlash Over Unapproved stETH Integration, Highlighting Governance and Security Concerns

LayerZero integrated a wrapped version of Lido's stETH token without asking LidoDAO first, sparking backlash for "frontrunning" governance.

The wrapped stETH token allows the original stETH to be reused in other applications across various chains.

The Lido community raised concerns about security risks with LayerZero's "mint and burn" bridge design.

LayerZero's bridge relies on its own validators rather than L2 networks' native bridges.

In response, LayerZero removed its wrapped stETH integration from Scroll to address LidoDAO's preference for native bridges.