After staking your ETH, what can you do if you need the money?
First, what it is: wstETH is a wrapped version of stETH. The number of tokens you hold stays the same, while the amount of stETH each wstETH can be redeemed for gradually increases as rewards accrue.
Here’s why: the secondary-market price of an LST may differ from the ETH backing it. Redeeming through the protocol involves a queue, so if many people are in a hurry to exit, the token can trade at a discount.
$LDO is the governance token of Lido, a liquid staking protocol.
Size your position according to what you can afford, and leave yourself enough of a buffer.
First, what it is: wstETH is a wrapped version of stETH. The number of tokens you hold stays the same, while the amount of stETH each wstETH can be redeemed for gradually increases as rewards accrue.
Here’s why: the secondary-market price of an LST may differ from the ETH backing it. Redeeming through the protocol involves a queue, so if many people are in a hurry to exit, the token can trade at a discount.
$LDO is the governance token of Lido, a liquid staking protocol.
Size your position according to what you can afford, and leave yourself enough of a buffer.