The governing body of Lido has approved the deployment of Lido’s Wrapped Staked Ether (wstETH) to Coinbase’s Base network, as announced on Nov. 8. The token is now live and available for trading or use in decentralized finance (DeFi) applications on the Base network.
Lido is on @BuildOnBase
You can now bridge your staked ETH to Base. pic.twitter.com/R9vN2XGs2g
— Lido (@LidoFinance) November 8, 2023
Lido is a liquid staking protocol that enables users to stake cryptocurrencies while also using them in DeFi applications. It does this by issuing a derivative token that can be exchanged for the underlying staked asset. For Ethereum’s native coin, Ether (ETH), the derivative token is called “Lido staked Ether (stETH),” which exists on the Ethereum network. When sent to other networks through a bridge, it must be wrapped, creating a derivative token called “Wrapped Staked Ether (wstETH).” Prior to Nov. 8, an official version of wstETH did not exist on the Base network.
On Oct. 17, Kyberswap announced that the Beefy Finance team had deployed an unofficial version of wstETH on Base. Both teams proposed that the decentralized autonomous organization (DAO) assume control and ownership of this version in order to officially endorse it.
Related: Lido will ‘wind down’ support for Solana stSOL token
The proposal was approved by the DAO on Nov. 2, with 597 million votes in favor and 255 against it.
“The availability of wstETH on Base is a significant milestone in scaling wstETH adoption,” said LidoDAO contributor Marin Tvrdić. “Expanding the protocol’s network of compatible L2s bridges the gap between scalability limitations and the growing demand for decentralized staking to benefit the broader Ethereum ecosystem.”
While this specific deployment received 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 that drew criticism from multiple protocols for being “proprietary.” This version is still under debate by the DAO, and no vote has been taken on it yet.