Lido’s Wrapped Staked Ether Deployed on Coinbase’s Base Network
The governing body of Lido has given its approval for the deployment of Wrapped Staked Ether (wstETH) on Coinbase’s Base network, as reported on Nov. 8. The token is now available to be traded or used in DeFi applications on the Base network.
Lido is a liquid staking protocol that allows users to stake crypto assets while still using them in DeFi applications. This is accomplished via the issuance of a derivative token that can be exchanged for the underlying staked one. In the case of Ethereum’s native coin, Ether (ETH), the derivative token is called “Lido Staked Ether (stETH).” When it is sent to other networks through a bridge, it is first wrapped, creating a double derivative token, which is known as “Wrapped Staked Ether (wstETH).” Before Nov. 8, there was no official version of wstETH on the Base network.
On Oct. 17, Kyberswap announced that the Beefy Finance team had deployed an unofficial version of wstETH on Base. The two teams proposed that the DAO take control and ownership of this version, so that it could be officially endorsed.
wstETH Adoption Gains Momentum
The DAO gave its approval on Nov. 2, with the majority of 597 million votes cast in its favor and 255 against it.
“The introduction of wstETH on Base is a significant step towards increasing wstETH adoption and bridging the gap between scalability and the growing demand for decentralized staking,” noted Marin Tvrdić, a contributor to LidoDAO.
Despite the support from LidoDAO members, not all versions of wstETH have been accepted as official. LayerZero launched a version of wstETH for Avalanche, BNB Chain, and Scroll, which has been met with criticism from multiple crypto protocols due to its alleged “proprietary” nature. The DAO is still debating the version, and no vote has been taken yet.
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