wstETH was launched by Lido Finance as part of Ethereum's transition to Ethereum 2.0. This innovation enables users to stake tokens and engage with DeFi applications simultaneously. Major milestones include: Initial launch following Ethereum's transition to PoS; Adoption as a staple in liquidity pools across DeFi platforms; Integration with various yield farming protocols.
TECHNOLOGY
wstETH harnesses the power of Ethereum's Beacon Chain, enabling users to stake ETH and receive staking rewards in a liquid format. Using smart contracts, wstETH is created when users stake ETH on Lido, simplifying the staking process while preserving liquidity for other financial activities.
USE CASES
wstETH is used to provide flexibility to staked ETH. It allows holders to benefit from staking rewards without losing liquidity. Common use cases include: Participation in DeFi protocols like lending and farming; As a collateral for borrowing in decentralized finance applications; Holding wstETH to earn staking rewards seamlessly.
FORECAST
Analysts observe wstETH as an innovative solution for Ethereum stakers. With growing adoption of Ethereum 2.0 and increased interest in staking, demand for wstETH is expected to rise. However, its value and utility may be influenced by Ethereum's future updates, market acceptance, and developments in DeFi.