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  1. Bitcompare
  2. Wrapped stETH (WSTETH)
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Wrapped stETH (WSTETH) Interest Rates

Compare Wrapped stETH interest rates for lending, staking, and borrowing

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About Wrapped stETH (WSTETH)

Wrapped stETH (WSTETH) is a tokenized version of staked Ether (stETH) that allows users to utilize their staked assets in the DeFi ecosystem while enjoying the benefits of staking. WSTETH is created by wrapping stETH, which is earned through the Ethereum 2.
WSTETH has several key use cases in the decentralized finance (DeFi) space, primarily by providing liquidity and enabling users to earn additional yields on their staked assets. A notable application is in lending protocols, where users can use WSTETH as collateral to borrow other cryptocurrencies...
The tokenomics of Wrapped stETH (WSTETH) are directly linked to its underlying asset, staked Ether (stETH), created through the Ethereum 2.0 staking process. WSTETH is minted on a 1:1 basis with stETH, ensuring a direct correlation between the two tokens.
The security of Wrapped stETH (WSTETH) is closely tied to the Ethereum blockchain's robust architecture, which utilizes a Proof of Stake (PoS) consensus mechanism. Validators propose and validate new blocks based on their staked Ether, incentivizing honest behavior through penalties for malicious...
The development roadmap for Wrapped stETH (WSTETH) aims to improve its integration within the DeFi ecosystem and enhance user experience. Key milestones include the successful launch of the wrapping mechanism, allowing users to convert staked Ether (stETH) into WSTETH at a 1:1 ratio.

How to Keep Your Wrapped stETH (WSTETH) Safe

To ensure the security of your Wrapped stETH (WSTETH), consider using a hardware wallet, such as Ledger or Trezor, which provides a secure environment for storing your private keys offline, significantly reducing the risk of online hacks. For private key management, always generate and store your keys in a secure, offline manner, and never share them; consider using a password manager for added security. Be aware of common security risks, such as phishing attacks and malware, and mitigate these by enabling two-factor authentication (2FA) on your accounts and regularly updating your software. Implementing multi-signature wallets can enhance security by requiring multiple approvals for transactions, thereby reducing the risk of unauthorized access. Lastly, establish a robust backup procedure by securely storing multiple copies of your wallet recovery phrases and private keys in different physical locations to ensure access in case of loss or theft.

How Wrapped stETH (WSTETH) Works

Wrapped stETH (WSTETH) operates on the Ethereum blockchain, utilizing its decentralized architecture to represent staked Ether in a wrapped format. The consensus mechanism employed is Proof of Stake (PoS), which enhances energy efficiency and security by allowing validators to create new blocks based on the amount of Ether they hold and are willing to stake as collateral. Transaction validation occurs through a network of validators who propose and attest to blocks, ensuring that all transactions are verified and recorded on the blockchain. Network security is strengthened by economic incentives for validators to act honestly, as malicious behavior can result in penalties, including the slashing of staked assets. Unique technical features of Wrapped stETH include its ability to maintain a 1:1 peg with staked Ether while allowing users to engage in decentralized finance (DeFi) activities, such as lending and earning interest, without relinquishing their staked position.

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Frequently Asked Questions About Wrapped stETH (WSTETH) Interest Rates

What is Wrapped stETH (wstETH) and how does it differ from plain stETH?
Wrapped stETH (wstETH) is a tokenized version of stETH that offers a fixed, non-maturing balance representation of stETH. While stETH increases in value as ETH is deposited and stETH accrues yield, wstETH abstracts away the continuous rebasing by maintaining a constant amount of wrapped tokens that automatically reflect underlying rewards through a proportional, underlying balance. In practice, this means you can hold wstETH in wallets and DeFi protocols that require a static supply while still earning staking rewards via the underlying ETH staking mechanism. The key difference is that wstETH is designed for easier integration with DeFi protocols that expect a non-rebasing token, while stETH is the rebasing variant that changes balance over time as rewards accrue.
How can I obtain wstETH and what should I know before using it in DeFi?
You can obtain wstETH by wrapping stETH through supported wallets or liquidity pools on compatible platforms. When you convert stETH to wstETH, you receive a fixed amount of wstETH that represents a share of the underlying stETH balance. Before using wstETH in DeFi, consider liquidity, slippage, and protocol compatibility. Some protocols may require a fixed supply token like wstETH instead of stETH for liquidity pools, lending, or yield farming. Be aware of withdrawal exposure to ETH rewards, potential price slippage during wrapping/unwrapping, and the fact that the underlying staking rewards accumulate in stETH, with wstETH reflecting those changes proportionally. Always verify the current exchange rate between stETH and wstETH on the platform you use, and ensure you’re interacting with reputable liquidity pools or bridges to minimize risk.
What are the risks and benefits of holding wstETH from a price and yield perspective?
Benefits of holding wstETH include compatibility with a wide range of DeFi protocols that require a non-rebasing token, exposure to ETH staking rewards via the underlying stETH, and stable tokenomics for liquidity provisioning. The price of wstETH generally tracks the value of stETH and ETH, reflecting staking yields as they accrue. Risks involve market liquidity gaps, potential depegging under extreme market conditions, and smart contract risk from bridges or wrapping mechanisms. Since wstETH is designed to be a fixed-supply token representing a share of stETH, price movements can diverge slightly from ETH or stETH in times of high demand or low liquidity. As with any staking-related asset, conduct due diligence on the protocol’s security, audit status, and current yield environment before committing funds.

Compare Wrapped stETH (WSTETH) Interest Rates

Wrapped stETH (WSTETH) Lending Rates

See all 21 lending rates

Wrapped stETH (WSTETH) Borrowing Rates

See all 14 borrowing rates

WSTETH Lending Rates Market Summary

Average Rate
0.99% APY
Highest Rate
1.98% APY
Compound
Platforms Tracked
2
Best Risk-Adjusted
1.98% APY
Compound

How to read this table:

  • Max Rate — Max Rate is the advertised maximum.
  • Base Rate — Base Rate is what most users actually get (often requires token staking or high tiers for max rate).

Learn more about how rates work →

PlatformActionMax RateBase RateMin DepositLockupUS Access
AaveGo to Platform0% APY———Check terms
CompoundGo to Platform1.98% APY———Check terms
PlatformActionBest RateLTVMin CollateralUS Access
AaveGet Loan0.33% APR——Check terms
CompoundGet Loan1% APR——Check terms