LidoDAO launches public version on wstETH base
According to a November 8 announcement, Lido's governing body has approved the deployment of Lido Packet Stacked Ether (wstETH) to Coinbase's Base network. The token is now live and can be traded or traded in decentralized finance (DeFi) applications on the Base network.
Lido is at @BuildOnBase.
Now you can link the paid ETH to Base. pic.twitter.com/R9vN2XGs2g
— Lido (@LidoFinance) November 8, 2023
Lido is a liquid staking protocol that allows users to share some cryptocurrencies while simultaneously using them in DeFi applications. It does this by issuing an origin token that can be taken by the underlying person.
If Ethereum is the native coin, the Ether (ETH) derived token on the Ethereum network is called “Lido Taken Ether (stETH)”. When sending via a bridge to other networks, it must first be folded, creating a double origin token called “Wrapped Staked Ether (wstETH)”. There was no official version of wstETH on the mainnet before November 8th.
On October 17, Kyberswap announced that the Beefy Finance team had deployed an unofficial version of wstETH on Base. The two groups proposed that the DAO take control and ownership of this version, publicly endorsing it.
Related: Lido ‘winds down' for Solana stSOL token support
DAO in 2010 On November 2, 597 million votes were in favor and 255 were against.
“The presence of wstETH on Base is a major milestone in the journey to increase the adoption of wstETH,” said Marin Tivardić, CEO of Lidodao. “Expanding the protocol's network of compatible L2s will benefit the broader Ethereum ecosystem by bridging the gap between scalability constraints and the growing demand for decentralized staking.”
Although this particular deployment has received support from LidoDAO members, not all versions of wstETH have been officially adopted. LayerZero released a version of wstETH for Avalanche, BNB Chain and Scroll which was criticized by many protocols as “proprietary”. That version is still being debated by the DAO, and no votes have been taken on it yet.
