Introduction

Wrapped stETH (wstETH) is a token that represents staked Ether (ETH) within the Lido protocol, offering a non-rebasing alternative to staked Ether (stETH). This design provides users with a stable balance, making wstETH particularly suitable for integration into various decentralized finance (DeFi) applications.​

Understanding wstETH

When users stake their ETH through Lido, they receive stETH tokens, which are rebasing assets—meaning their balances automatically adjust to reflect staking rewards. However, some DeFi platforms may not support rebasing tokens due to their fluctuating balances. To address this, Lido introduced wstETH, a wrapped version of stETH that maintains a constant balance while its value appreciates over time, corresponding to the accrued staking rewards.​

Key Features of wstETH

  • Stable Balance: Unlike stETH, wstETH does not rebase; users' token balances remain constant, with the token's value increasing to reflect staking rewards.​IQ.wiki
  • DeFi Compatibility: The non-rebasing nature of wstETH ensures seamless integration with DeFi protocols that may not support rebasing tokens, expanding its utility across the ecosystem.​
  • Liquidity and Flexibility: wstETH allows users to participate in Ethereum staking while retaining liquidity, enabling them to engage in various DeFi activities without locking up their assets.​

Market Performance

As of March 23, 2025:

  • Price: wstETH is trading at approximately $2,395.84, reflecting a 0.90% increase over the past 24 hours. ​CoinGecko
  • Market Capitalization: The market cap stands at around $8.64 billion, indicating substantial adoption and trust in the token. ​CoinGecko
  • Trading Volume: The 24-hour trading volume is approximately $13.55 million, showcasing active participation in wstETH markets. ​CoinGecko

Integration with DeFi Platforms

wstETH's compatibility with various DeFi platforms enhances its utility within the Ethereum ecosystem. Users can leverage wstETH as collateral for lending and borrowing, participate in yield farming, and engage in liquidity provision across multiple protocols, thereby maximizing their staking rewards while maintaining asset liquidity.​

Conclusion

Wrapped stETH (wstETH) offers a valuable solution for Ethereum stakers seeking liquidity and broader DeFi integration. By providing a non-rebasing token that appreciates in value over time, wstETH enables users to participate in staking rewards without sacrificing the flexibility to engage in various DeFi opportunities.