Latest Movements
Wrapped stETH (WSTETH) is currently priced at $0.45 with a 24-hour trading volume of $57.42M. The market cap of Wrapped stETH stands at $13.62B, with 3.53M WSTETH in circulation. For those looking to buy or trade Wrapped stETH, Aave offers avenues to do so securely and efficiently
- Market cap
- $13.62B
- 24h volume
- $57.42M
- Circulating supply
- 3.53M WSTETH
Frequently Asked Questions About Wrapped stETH (WSTETH) Lending
- What is Wrapped stETH (wstETH) and how does it differ from regular stETH?
- Wrapped stETH (wstETH) is a tokenized representation of stETH that maintains a fixed amount of stETH per wstETH. Unlike stETH, which represents a claim on future ETH obtained via staking, wstETH uses a wrapping mechanism to provide a constant, easily tradable balance that simplifies automated trading and integration in DeFi. The conversion between stETH and wstETH is one-way in practice—staking yields stETH, which can then be wrapped into wstETH. The primary practical benefit is improved liquidity management and compatibility with DeFi protocols that require a fixed-token amount per unit rather than a moving stake value.
- How is the price and value of wstETH determined, and is it always 1:1 with stETH or ETH?
- wstETH price is derived from the underlying stETH through a continuous rebalancing mechanism, but the token itself is designed to maintain a 1:1 peg with stETH in terms of underlying value. The market price of wstETH on exchanges may deviate slightly from stETH due to liquidity and trading dynamics. When converting, the protocol ensures you receive the correct amount of wstETH for your stETH, maintaining the intended 1:1 value relationship. Keep in mind that ETH value fluctuations affect the total value exposed through stETH and wstETH as stETH is a claim on staked ETH.
- Who should consider using wstETH, and what are the main use cases in DeFi?
- WstETH is particularly useful for traders, liquidity providers, and developers building DeFi strategies that require a stable token with a fixed amount per unit. Common use cases include providing liquidity in AMMs, collateral in lending protocols, and hedging exposure to ETH staking yields without managing variable stake amounts. Since wstETH is compatible with many DeFi protocols that accept ERC-20 tokens, it facilitates more efficient portfolio management, automated strategies, and cross-protocol integrations. If you regularly work with staked ETH in smart contracts, wstETH can streamline execution and reduce slippage related to fluctuating staking balances.
- Are there security or risk considerations when using wstETH, such as custody and staking risks?
- Yes. As with any staking-derived token, there are several risk factors. First, custodial risk depends on how you hold the token—holding on a centralized or non-custodial wallet changes your risk exposure. There is also smart contract risk associated with the wrapping mechanism and any protocol that issues or accepts wstETH; audits and track record of the issuing protocol matter. Market and liquidity risk can cause temporary price deviation between wstETH and stETH. Finally, regulatory considerations around staking and tokenized representations of staked assets can impact your position. Always use reputable wallets and platforms, and diversify across exchanges to minimize single-point failures.
- How do I convert between stETH and wstETH, and what fees are involved?
- Converting stETH to wstETH (and vice versa) is typically performed through a wrapper contract or participating DeFi protocol that handles the wrapping/unwrapping. The process usually involves sending stETH to receive an equivalent amount of wstETH, or sending wstETH to receive the underlying stETH. Fees include minting/redemption costs charged by the protocol and, potentially, gas fees on the Ethereum network. Some platforms add a small protocol fee or liquidity provider fee. Always verify current rates, exchange paths, and applicable fees on the specific platform you’re using, as fees can vary between exchanges and wallets.
