In an exciting twist for crypto enthusiasts and DeFi lovers alike, Lido’s governing body has greenlit the launch of Wrapped Staked Ether (wstETH) on the Coinbase Base network as of November 8. This significant step allows users to trade wstETH and leverage it within decentralized finance applications. It’s as if the crypto universe just opened a new chapter!
What is Lido and wstETH?
Lido is a liquid staking protocol that sprinkles a bit of magic on traditional staking by allowing users to stake cryptocurrencies while still letting them flex their DeFi muscles. It operates by issuing derivative tokens, which can be exchanged for the underlying staked assets. For Ethereum (ETH) aficionados, the derivative goes by the name of “Lido staked Ether (stETH).”
But sometimes you need to travel, and that’s where wstETH comes in. When stETH crosses networks, it gets wrapped up—creating a double derivative token called Wrapped Staked Ether (wstETH). Until recently, Base was lacking an official wstETH, but not anymore!
The Prologue: Unofficial Beginnings
Funny how things work in the crypto space! Just a little over a month ago, on October 17, Kyberswap and Beefy Finance quietly rolled out an unofficial wstETH on Base. They decided to propose that the decentralized autonomous organization (DAO) take the reins and endorse this version officially, proving that even in the world of finance, drama is never far off.
The Big Vote
Fast forward to November 2, where an impressive 597 million votes were cast in favor of adopting the proposal, compared to a mere 255 opposing it. This democratic process is nothing short of awe-inspiring—who knew staked ETH could prompt such passionate politics?
Major Milestone for wstETH Adoption
LidoDAO contributor Marin Tvrdić summed it up beautifully: “The availability of wstETH on Base marks a major milestone in the journey to scaling wstETH adoption.” It’s all about bridging the gap between the limitations of scalability and the soaring demand for decentralized staking within the ever-growing Ethereum ecosystem.
Bumps in the Road
However, it’s important to note that while this deployment is celebrated, not every version of wstETH is scholarly accepted. LayerZero’s recent attempt to branch out wstETH to Avalanche, BNB Chain, and Scroll has faced scrutiny and debate among protocols. Some deemed it “proprietary,” prompting endless discussions that could rival a weekend seminar.
With wstETH now officially live on Base and the wheels of the DAO turning faster, it would be interesting to see how this story unfolds. Stay tuned for more twists and turns in the remarkable world of crypto!
