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wstETH is a wrapped form of stETH. Rather than rebasing and updating account balances every day, it works in a way that’s comparable to a c-token. It reflects a proportional claim on staked ETH (stETH). When holders leave wstETH, they receive their initial stETH principal plus any stETH earnings. wstETH is created and destroyed as stETH is wrapped and unwrapped.
Lido is a liquid staking protocol for POS blockchains. It issues a liquid token that stands in for the value of your staked collateral and the rewards you accumulate over time. By abstracting away the operational burden, Lido helps remove the need to manage infrastructure while supporting ongoing participation in DeFi.
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