LidoDAO Introduces Official Version of wstETH on Base Platform

Lido’s Wrapped Staked Ether Now on Coinbase’s Base Network

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. This means that the token is now live and can be traded or used in decentralized finance (DeFi) applications on the Base network.

What is Lido?

Lido is a liquid staking protocol that allows you to stake some cryptocurrencies while simultaneously using them in DeFi applications. It does this by issuing a derivative token that can be redeemed for the underlying staked one. For Ethereum’s native coin, Ether (ETH), the derivative token is called “Lido staked Ether (stETH),” which exists on the Ethereum network. When it is sent to other networks through a bridge, it has to first be wrapped, creating a double derivative token called “Wrapped Staked Ether (wstETH).”

Deployment and Approval Process

Before Nov. 8, no official version of wstETH existed on the Base network. On Oct. 17, Kyberswap announced that the Beefy Finance team had deployed an unofficial version of wstETH on Base. The two teams proposed for the DAO to take control and accept ownership of this version, so as to officially endorse it. The DAO approved the proposal on Nov. 2 after receiving 597 million votes in favor of it and 255 votes against it.

Impact and Controversy

“The availability of wstETH on Base marks a major milestone in the journey to scaling wstETH adoption,” stated LidoDAO contributor Marin Tvrdić. However, 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 allegedly being “proprietary.” That version is still being debated by the DAO, and no vote has yet been taken on it.

Hot Take: Lido Expands to Base Network

Lido’s expansion to Coinbase’s Base network with the deployment of Wrapped Staked Ether (wstETH) marks an important step toward broader adoption and scalability for decentralized staking within the Ethereum ecosystem.