Wrapped stETH

wstETH is a version of stETH that functions similarly to a c-token, representing pro-rata ownership of the staked ETH (stETH). Unlike other tokens that rebase or alter account holdings daily, wstETH maintains its value. When an investor withdraws from wstETH, they receive their principal stETH along with any earnings accrued.

Lido operates as a liquid staking protocol for POS blockchains. It offers users a liquid token symbolizing their staked collateral and accumulated profits over time. By eliminating the need to run infrastructure, Lido facilitates ongoing participation in DeFi.

The process of minting and burning wstETH is directly tied to the wrapping and unwrapping of stETH.

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