{"id":"wrapped-steth-wsteth","title":"Wrapped stETH (WSTETH)","content":"**Wrapped stETH (WSTETH)** is a token that represents a stable version of staked Ether ([stETH](https://iq.wiki/wiki/lido-staked-ethereum-steth)) without the rebasing mechanism, utilized in various [decentralized finance (DeFi)](https://iq.wiki/wiki/defi) applications. [[1]](#cite-id-f0ejvqaq31j)[[2]](#cite-id-9ayw9vqq6xc) \n\nCreated by the team behind [Lido](https://iq.wiki/wiki/lido-dao), a [liquid staking](https://iq.wiki/wiki/liquid-staking) platform, WSTETH is designed to facilitate integration with DeFi protocols by maintaining a constant balance, unlike stETH, which undergoes regular rebasing. [[3]](#cite-id-dlrxhv01nms)[[4]](#cite-id-q00q6my90p9)\n\n$$widget0 [YOUTUBE@VID](0yiCBrzbgYk)$$\n\n## Overview\n\n[Lido](https://iq.wiki/wiki/lido-dao) introduced the WSTETH token on February 19, 2021, to address the challenges associated with using [stETH](https://iq.wiki/wiki/lido-staked-ethereum-steth) in specific [DeFi](https://iq.wiki/wiki/defi) environments. While stETH is configured to rebase daily to reflect [staking](https://iq.wiki/wiki/staking) rewards, WSTETH maintains a static balance, making it more suitable for use in protocols that require consistent token balances, such as [Uniswap](https://iq.wiki/wiki/uniswap) and [MakerDAO](https://iq.wiki/wiki/makerdao).\n\nWSTETH represents a share of the total [stETH](https://iq.wiki/wiki/lido-staked-ethereum-steth) supply but does not undergo daily balance adjustments. Instead, its value appreciates relative to stETH as [staking](https://iq.wiki/wiki/staking) rewards accumulate. This design allows WSTETH users to participate in [DeFi](https://iq.wiki/wiki/defi) activities while benefiting from staking rewards without the complications associated with rebasing tokens.[[1]](#cite-id-f0ejvqaq31j)[[2]](#cite-id-9ayw9vqq6xc)[[3]](#cite-id-dlrxhv01nms)[[4]](#cite-id-q00q6my90p9)\n\n## Functionality and Use Cases\n\nWSTETH can be acquired by wrapping stETH through the [Lido](https://iq.wiki/wiki/lido-dao) platform or through [decentralized exchanges (DEXs)](https://iq.wiki/wiki/decentralized-exchange) integrated with Lido. Once wrapped, WSTETH can be utilized across multiple [DeFi](https://iq.wiki/wiki/defi) protocols on various [blockchains](https://iq.wiki/wiki/blockchain), including [Ethereum](https://iq.wiki/wiki/ethereum), [Arbitrum](https://iq.wiki/wiki/arbitrum), and [Optimism](https://iq.wiki/wiki/optimism). It serves as collateral in lending platforms like [Aave](https://iq.wiki/wiki/aave) and can be used in [liquidity pools](https://iq.wiki/wiki/liquidity-pool) on exchanges such as [Uniswap](https://iq.wiki/wiki/uniswap) and [Balancer](https://iq.wiki/wiki/balancer).\n\nThe primary utility of WSTETH lies in its compatibility with a broader range of [DeFi](https://iq.wiki/wiki/defi) [applications](https://iq.wiki/wiki/decentralized-application). The static balance of WSTETH ensures smooth integration with protocols that may not be designed to handle fluctuating balances, thereby facilitating participation in activities such as yield farming and [liquidity provision](https://iq.wiki/wiki/liquidity-providers).[[2]](#cite-id-9ayw9vqq6xc)[[1]](#cite-id-f0ejvqaq31j)[[3]](#cite-id-dlrxhv01nms)[[4]](#cite-id-q00q6my90p9)\n\n## Bridging and Cross-Chain Integrations\n\nTo increase the accessibility of WSTETH, [Lido](https://iq.wiki/wiki/lido-dao) has extended its availability across multiple [blockchain](https://iq.wiki/wiki/blockchain) networks. Support for bridging WSTETH to [Arbitrum](https://iq.wiki/wiki/arbitrum) and [Optimism](https://iq.wiki/wiki/optimism) was introduced on October 6, 2022. This was followed by the launch of a bridge to the [Cosmos](https://iq.wiki/wiki/cosmos) ecosystem via Neutron on September 28, 2023, along with subsequent deployments on networks such as [BNB Smart Chain](https://iq.wiki/wiki/binance-smart-chain), [Avalanche](https://iq.wiki/wiki/avalanche), [Scroll](https://iq.wiki/wiki/scroll), [Mantle](https://iq.wiki/wiki/mantle-network), Linea, and [zkSync](https://iq.wiki/wiki/zksync).\n\nThese bridging capabilities enable WSTETH to be used across various [blockchain](https://iq.wiki/wiki/blockchain) ecosystems, enhancing its utility within the [DeFi](https://iq.wiki/wiki/defi) landscape.\n\nIn summary, Wrapped stETH (WSTETH) serves as a rebase-free alternative to stETH within the DeFi ecosystem. Its design makes it easy to participate in a variety of DeFi activities while enabling the accumulation of staking rewards.[[1]](#cite-id-f0ejvqaq31j)[[2]](#cite-id-9ayw9vqq6xc)[[3]](#cite-id-dlrxhv01nms)[[4]](#cite-id-q00q6my90p9)\n\n## Lido Finance\n\nLido is a decentralized [staking](https://iq.wiki/wiki/staking) solution that facilitates the staking of assets on [blockchain](https://iq.wiki/wiki/blockchain) networks such as [Ethereum](https://iq.wiki/wiki/ethereum) and [Polygon](https://iq.wiki/wiki/polygon). \n\nUnlike traditional staking methods that often require assets to be locked up, Lido allows users to maintain liquidity. When users stake through Lido, they receive [liquid staking](https://iq.wiki/wiki/liquid-staking) tokens like [stETH](https://iq.wiki/wiki/lido-staked-ethereum-steth), which correspond to their staked assets. \n\nThese tokens accrue staking rewards and can be utilized in various [decentralized finance (DeFi)](https://iq.wiki/wiki/defi) applications, offering both liquidity and the ability to participate in other on-chain activities. \n\nLido functions by pooling user deposits and staking them with network [validators](https://iq.wiki/wiki/validator), with the aim of simplifying the staking process and, at the same time, allowing the continuous generation of rewards and flexibility in the use of assets.[[1]](#cite-id-f0ejvqaq31j)[[2]](#cite-id-9ayw9vqq6xc)[[3]](#cite-id-dlrxhv01nms)","summary":"Wrapped stETH (WSTETH) is a stable token representing staked Ether (stETH) without rebasing, suited for DeFi applications like Uniswap and MakerDAO.","images":[{"id":"QmZLEWNUf6HdmhyXov3Ck2mRueNkhhtMLckvSZGYUE538D","type":"image/jpeg, image/png"}],"categories":[{"id":"cryptocurrencies","title":"Cryptocurrencies"}],"tags":[{"id":"Ethereum"}],"media":[{"id":"https://www.youtube.com/watch?v=0yiCBrzbgYk","size":"0","name":"0yiCBrzbgYk","type":null,"source":"YOUTUBE"},{"id":"QmdZa47P4s4YvjLWBFzCvToPXaMB2sYC7ckQbXGwF5JAu2","size":"0.00","name":"wstETH.webp","type":"GALLERY","source":"IPFS_IMG"},{"id":"QmXJraKkz6GYq3pjoBZWtEMS2q9t1BDJZ4GrfB3esbd3mX","size":"0.03","name":"Design sem nome (1).png","type":"GALLERY","source":"IPFS_IMG"},{"id":"QmYWz1kNmW5aQVEEPDPbtaPZ8Q9vF4D2sGAgD5jJ6qfVGX","size":"0.01","name":"steth_logo.webp","type":"GALLERY","source":"IPFS_IMG"},{"id":"QmPypT8xf6Yvg7TjtChyham3WSCM6wZv1A5VJWoTSV2J3k","size":"0.23","name":"Captura de Tela 2024-08-19 às 01.04.22.png","type":"GALLERY","source":"IPFS_IMG"}],"metadata":[{"id":"references","value":"[{\"id\":\"f0ejvqaq31j\",\"url\":\"https://lido.fi/faq\",\"description\":\"What is Lido?\\n\",\"timestamp\":1724041464731},{\"id\":\"9ayw9vqq6xc\",\"url\":\"https://messari.io/project/lido-dao/profile\",\"description\":\"Lido DAO\",\"timestamp\":1724041521762},{\"id\":\"dlrxhv01nms\",\"url\":\"https://stake.lido.fi/wrap\",\"description\":\"Wrap & Unwrap\\nStable-balance stETH wrapper for DeFi\",\"timestamp\":1724041572139},{\"id\":\"q00q6my90p9\",\"url\":\"https://help.lido.fi/en/articles/5231836-what-is-lido-s-wsteth\",\"description\":\"What is Lido's wstETH?\\n\",\"timestamp\":1724041619531}]"},{"id":"website","value":"https://lido.fi/"},{"id":"contract_url","value":"https://etherscan.io/token/0x7f39c581f595b53c5cb19bd0b3f8da6c935e2ca0#code"},{"id":"twitter_profile","value":"https://x.com/LidoFinance"},{"id":"discord_profile","value":"https://discord.com/invite/lido"},{"id":"telegram_profile","value":"https://t.me/lidofinance"},{"id":"coinmarketcap_url","value":"https://coinmarketcap.com/currencies/lido-finance-wsteth/"},{"id":"coingecko_profile","value":"https://www.coingecko.com/en/coins/wrapped-steth"},{"id":"previous_cid","value":"QmXoqrQDum55EJSickeJnFzGByPnmgtEL74VZ6p3PZd2s6"},{"id":"commit-message","value":""},{"id":"previous_cid","value":"QmXoqrQDum55EJSickeJnFzGByPnmgtEL74VZ6p3PZd2s6"}],"events":[{"id":"3bd2a520-d342-4238-bd88-fc9dcd90b253","date":"2021-02-01","title":"On Feb. 19, 2021, Lido deployed the wstETH token","type":"CREATED","description":"On Feb. 19, 2021, Lido deployed the wstETH token (wrapped staked ETH) on Ethereum.","link":"https://messari.io/project/lido-dao/profile","multiDateStart":null,"multiDateEnd":null,"continent":null,"country":null}],"user":{"id":"0x212Cb3F4aE6611054637f9f78F18fB628AD258bb"},"author":{"id":"0xd5893989b9952c6568a99F854795AcC5Ae480D56"},"language":"en","version":1,"linkedWikis":{"blockchains":["ethereum"],"founders":["vasiliy-shapovalov"],"speakers":[]}}