LayerZero, an interoperability protocol, has faced community backlash over how it describes the integration of wstETH on its omnichain fungible token (OFT) standard, a technology designed to move tokens onto three new blockchains.
Interoperability projects including Connext Network, ChainSafe and Sygma jointly called for open bridging standards in a statement on Friday, claiming OFTs support vendor lock-in and that "the DAO issuing the token should be the one deciding on a given chain." The final arbiter of asset versions."
“As a leading group of interoperability projects, we would like to express concern about LayerZero’s recent behavior of deploying their proprietary wstETH to Avalanche, BNB Chain, and Scroll without the support of Lido DAO.” The interoperability agreement writes road. "We believe this action is a direct consequence of a broken incentive system around interoperability that can only be fixed through standardization and healthy competition at every layer of the bridging stack." (The Block)