Wrapped Liquid Staked Ether 2.0 (WSTETH)

Wrapped Liquid Staked Ether 2.0 (WSTETH) is a cryptocurrency token representing Ether (ETH) that has been staked through the Lido service. It functions as a receipt token, providing proof of ownership for staked ETH plus its accumulated rewards. This asset allows users to earn staking rewards while maintaining liquidity, as the underlying ETH remains locked to secure the Ethereum network but the token itself is freely tradable.

Key Characteristics

• Function: Acts as a liquid IOU for staked ETH and its rewards.
• Mechanism: Users deposit ETH into Lido to receive the token, enabling trading, lending, or movement while rewards accrue.
• Relation to stETH: Serves as a wrapped version of stETH, offering a more predictable package for applications and software.
• History: First market data recorded in 2022.

By decoupling the utility of the token from the lock-up period of the underlying asset, WSTETH facilitates participation in the decentralized finance ecosystem without sacrificing the security benefits of staking. The token behaves predictably for various apps, ensuring consistent performance for holders who wish to utilize their assets across different platforms while their original ETH continues to support the network.