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Summary of Lido wstETH
- Lido is a liquid staking protocol for POS blockchains.
- Lido provides a liquid token representing staked collateral and earnings.
- wstETH is a wrapped version of stETH, similar to a c-token.
- wstETH represents pro-rata ownership of staked ETH (stETH).
- Exiting wstETH returns principal stETH + stETH earnings.
- wstETH is minted and burned as stETH is wrapped and unwrapped.
About Lido wstETH: A Liquid Staking Solution
Lido is a pioneering liquid staking protocol designed for Proof-of-Stake (POS) blockchains, offering a liquid token that encapsulates your staked collateral and accrued earnings over time. By alleviating the need to maintain infrastructure, Lido empowers continued participation in the DeFi ecosystem.
wstETH is a wrapped iteration of stETH, diverging from the rebase mechanism that alters account holdings on a daily basis. Instead, it operates similarly to a c-token, symbolizing a proportionate ownership stake in the staked ETH (stETH). Upon exiting wstETH, users are refunded their principal stETH, accompanied by the accrued stETH earnings.
wstETH is minted and burned in tandem with the wrapping and unwrapping of stETH, respectively.