// GLOSSARY -- DEFI

What is wstETH?

1 min read Updated

Wrapped Staked ETH (wstETH) is a non-rebasing wrapper around Lido's stETH — providing a token whose price increases over time (reflecting staking rewards) rather than whose balance increases, simplifying DeFi integration.

WHY IT MATTERS

stETH's rebasing model (your balance increases daily) creates complications for DeFi protocols that expect static balances. wstETH solves this: wrap stETH into wstETH, and instead of your balance increasing, the token's value increases. 1 wstETH is always worth more than 1 ETH.

wstETH is the preferred format for DeFi integration: lending (Aave), liquidity provision, and cross-chain bridging. Its non-rebasing nature means protocols don't need special handling for the changing balance.

The conversion rate between stETH and wstETH continuously increases as staking rewards accumulate, reflecting the growing underlying value.

FREQUENTLY ASKED QUESTIONS

wstETH vs stETH?
Same underlying asset, different accounting. stETH: balance increases (rebasing). wstETH: price increases (non-rebasing). wstETH is better for DeFi; stETH is simpler for holding.
How much is wstETH worth?
More than 1 ETH and increasing. The ratio reflects accumulated staking rewards. Check the current rate on Lido's website or on-chain.
Can I unwrap wstETH?
Yes — unwrap wstETH to stETH anytime. The amount of stETH you receive reflects the accumulated rewards during the wrapping period.

FURTHER READING

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