Ethereum

**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. Created 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.[\[1\]](#cite-id-f0ejvqaq31j)[\[2\]](#cite-id-9ayw9vqq6xc)[\[3\]](#cite-id-dlrxhv01nms)[\[4\]](#cite-id-q00q6my90p9)  
$$widget0 [YOUTUBE@VID](0yiCBrzbgYk)$$  
  
# Overview  
  
[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).  
  
WSTETH 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)  
  
### Functionality and Use Cases  
  
WSTETH 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).  
  
The 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)  
  
### Bridging and Cross-Chain Integrations  
  
To 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).  
  
These 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.  
  
In 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)  
  
# Lido Finance  
  
Lido 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). Unlike 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. These 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. Lido 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)

On Feb. 19, 2021, Lido deployed the wstETH token (wrapped staked ETH) on Ethereum.

On Feb. 19, 2021, Lido deployed the wstETH token

Vasiliy Shapovalov

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Wrapped stETH (WSTETH) is a stable token representing staked Ether (stETH) without rebasing, suited for DeFi applications like Uniswap and MakerDAO.

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Wrapped stETH (WSTETH)

On Feb. 19, 2021, Lido deployed the wstETH token

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