Lido's Wrapped Staked Ether (wstETH) Now Live on Coinbase's Base Network
Summary:
Lido's management has approved the launch of Wrapped Staked Ether (wstETH) on Coinbase's Base network. Lido's protocol allows users to stake cryptocurrencies and simultaneously use them in DeFi applications. wstETH is now eligible for trading and use in DeFi operations on Base. An unofficial version of wstETH previously launched on Base by Beefy Finance has been endorsed by the DAO as an official version, marking a significant step towards scaling wstETH adoption. Not all wstETH versions have received official recognition, with a version by LayerZero for Avalanche, BNB Chain, and Scroll still under DAO review.
Lido's management has given the green light to launch the Wrapped Staked Ether (wstETH) token on Coinbase's Base network, as revealed in a public statement on Nov. 8. The token has been activated and is now eligible for trading or utilization in decentralized finance (DeFi) operations on the Base platform.
Lido, known for its fluid staking protocol, facilitates users in staking select cryptocurrencies and using them simultaneously in DeFi ventures. This is accomplished through the issuance of a derivative token that can be exchanged for the original staked one. For Ethereum's primary coin, Ether (ETH), this derived token is referred to as "Lido staked Ether (stETH)" which is part of the Ethereum network. This token becomes a dual derivative coined "Wrapped Staked Ether (wstETH)" when transferred to separate networks via a bridge. Until Nov. 8, there was no recognized version of wstETH on the Base network.
Then on Oct. 17, it was reported by Kyberswap that an unofficial wstETH version was launched on Base by the Beefy Finance team. Both teams made a suggestion for the DAO to assume responsibility and become the official owner of the version for endorsement purposes.
Lido's plan to discontinue support for the Solana stSOL token was also mentioned in related news.
The proposal was accepted by the DAO on Nov. 2 after receiving 597 million votes in favor, and 255 votes against it.
Marin Tvrdić, a LidoDAO contributor, characterized the wstETH availability on Base as a significant step towards achieving widespread adoption of wstETH. He pointed out that the expansion of compatible L2s within the protocol breaks down the barriers between scalability constraints and the increasing need for decentralized staking, ultimately benefiting the Ethereum ecosystem at large.
Despite the backing from LidoDAO members for this specific deployment, official recognition is not extended to all wstETH versions. LayerZero's wstETH version for Avalanche, BNB Chain, and Scroll received pushback from several protocols for its alleged proprietary nature. The DAO is still deliberating on this version, and no decision has been made as of yet.
Published At
11/8/2023 8:00:00 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.