In a wild and daring move, LidoDAO has seized control of the deployment for a wrapped version of its flagship token, stETH, on Base. This audacious decision was approved by Lido’s governing body, paving the way for the token’s launch on Coinbase’s Base network. Now, traders and DeFi enthusiasts can rejoice as they can trade and utilize this token on the Base network.
Lido is a revolutionary liquid staking protocol that allows users to stake their cryptocurrencies while still being able to use them in DeFi applications. It accomplishes this feat by issuing a derivative token, known as “Lido staked Ether (stETH),” which represents the underlying staked Ether on the Ethereum network. However, when this token is sent to other networks via a bridge, it needs to be wrapped, resulting in the creation of a double derivative token called “Wrapped Staked Ether (wstETH).” Until now, there was no official version of wstETH on the Base network.
But fear not, for the Beefy Finance team had already deployed an unofficial version of wstETH on Base back on October 17. Sensing an opportunity, LidoDAO and Kyberswap proposed that the DAO take control and officially endorse this version. After much deliberation and a whopping 597 million votes in favor, the proposal was approved on November 2.
This momentous occasion marks a significant milestone in the quest to scale wstETH adoption. Marin Tvrdić, a contributor to LidoDAO, expressed his excitement, stating that expanding the protocol’s network of compatible Layer 2 solutions bridges the gap between scalability limitations and the growing demand for decentralized staking within the Ethereum ecosystem.
However, it’s important to note that not all versions of wstETH have been accepted as official. The LayerZero version for Avalanche, BNB Chain, and Scroll has faced criticism for being deemed “proprietary” by multiple protocols. The fate of this version is still up for debate, and the DAO has yet to cast its vote.
In summary, LidoDAO has boldly taken control of the deployment for a wrapped version of its flagship token, stETH, on Base. This move has been met with enthusiasm from the community, as it opens up new possibilities for trading and utilizing the token in DeFi applications. However, the DAO’s endorsement only applies to the Base network, and the fate of other versions of wstETH is still uncertain.