As stated by Lido Finance, “With the availability of wstETH to Base, users of Base will now be able to use their staked ETH across the growing Base DeFi ecosystem, whilst protocols on Base will be able to integrate wstETH to further enhance liquidity and usability.”
LidoDAO (LDO), the governing body of liquid staking platform Lido Finance, has added its Wrapped Staked Ether token to Base, Coinbase’s L2 Network.
Lido’s wstETH is a wrapped version of the Lido Staked Ether (stETH) token that allows holders to bridge their stETH assets on multiple blockchains. Similar to stablecoins, wrapped tokens maintain a 1:1 peg with their original cryptocurrencies.
Earlier in October, decentralized exchange KyberSwap put forth a proposal to deploy wstETH on Base. Highlighting the fact that stETH remains the seventh largest cryptocurrency, KyberSwap cited that by integrating the wrapped version of the coin on Coinbase’s L2 network, users can access their stETH holdings on multiple DeFi protocols.
Within a few days, LidoDAO commenced a snapshot vote to decide whether the organization should accept ownership of the wstETH bridging components developed by Beefy. The voting ended on November 2, with a majority of DAO members agreeing in favor of accepting the proposal.
According to LidoDAO, holders of wstETH will continue to receive staking rewards on the wrapped token. However, the rewards will remain unrealized unless users unwrap their wstETH holdings to stETH coins.
Written by
Ayush Pande
Ayush Pande is a hardware, gaming, and crypto writer based in India. He's a tech enthusiast who's fascinated by the potential of blockchain technology.
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