Wrapped stETH
WSTETH
Evaluation Score
Overall rating on a scale of 0-10
Crypto Token Health Score Explained
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AI Analysis
Comprehensive evaluation of the token
WSTETH (Wrapped stETH) is a premier liquid staking derivative with exceptional fundamentals across all evaluated categories. It excels by providing a non-rebasing, DeFi-compatible version of staked ETH, achieving widespread adoption and deep liquidity. Key strengths include robust development, strong community engagement, an experienced team, and innovative governance through the Lido DAO. Despite its high scores, WSTETH carries notable risks. The primary concern is the significant centralization of its underlying protocol, Lido Finance, which dominates the ETH staking market. Additionally, it is exposed to systemic risks from third-party DeFi integrations and potential de-pegging events of stETH.
Detailed Analysis by Category
Development Activity
Code updates and developer engagement
Community Support
Social media presence and community engagement
Tokenomics
Supply, distribution, and utility
Market & Use Case
Value proposition and competitive landscape
Team & Governance
Team background and project governance
Security & Audits
Security history and audit status
About Wrapped stETH (WSTETH)
Wrapped stETH (WSTETH)
Wrapped stETH (WSTETH) is a non-rebasing, ERC-20 representation of Lido’s staked ETH (stETH). WSTETH brings the benefits of liquid staking to DeFi applications and trading platforms by converting rebasing stETH into a fixed-balance token that accrues value through its exchange rate.
Overview
- Token Name: Wrapped stETH
- Symbol: WSTETH
- Standard: ERC-20 on Ethereum
- Protocol: Lido Finance
How It Works
- Wrap stETH: Deposit stETH into the WSTETH contract.
- Receive WSTETH: Users get WSTETH at a 1:1 exchange rate against stETH.
- Accrue Rewards: Staking rewards accumulate in the contract. WSTETH’s exchange rate to stETH increases over time, reflecting earned ETH yield.
- Unwrap Anytime: Convert WSTETH back to stETH, redeeming accumulated staking rewards.
Key Features
- Non-Rebasing: Fixed token balance makes WSTETH compatible with wallets, DeFi protocols, and on-chain analytics.
- Liquid Staking: Access ETH staking yields without locking up ETH directly in a validator.
- DeFi Integration: Seamless use in lending, borrowing, yield farming, and AMM pools.
- Security & Decentralization: Backed by Lido’s decentralized node operator network and audited smart contracts.
Benefits for Users and Developers
- Tractable Balances: Simplified accounting with standard ERC-20 transfers.
- Yield Exposure: Indirectly earn staking rewards from Lido’s node operators.
- Composability: Integrate WSTETH into smart contracts without handling rebasing logic.
Wrapped stETH (WSTETH) is a liquid staking asset on Ethereum, boosting DeFi interoperability while preserving Lido’s staking rewards.
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