Thread by @wittyprince_

The rise of #wstETH: The unstoppable force driving DeFi profits on Arbitrum's decentralized platform.

Ready to Take your DeFi game to the NEXT LEVEL?

(Open this thread)

@LidoFinance, @traderjoe_xyz & #LidoArbitrumAdventure

🧵/23 ⏬⏬

In this Thread, we will Cover:

A•What is wstETH?

B• Why wsETH? What makes it Special?

C• Why Lido Finance?

D•What are the Use Cases of wstETH?

E• What Use Cases do I suggest for wstETH?

F•My Advice to you.

2/23

A) What is wstETH?

(I hope to explain as I would to an eight year old.)

Before we go to "wstETH", we should consider "stETH"

➡️ stETH means "staked Ether" and is a token that represents Ether (ETH) that has been deposited into the Ethereum 2.0 staking contract.

Easy.

3/23

Since stETH = Staked ETH,

What is wstETH?

wstETH = Wrapped Staked ETH

It's simply a token that allows users EARN staking rewards while maintaining liquidity - Perfect if you want to participate in Ethereum's POS consensus mechanism but don't want to lock up their ETH.

4/23

B) Why wstETH?

What makes it so special?

You see, "Wrapped staked Ether," is an innovative token.

It literally allows users to earn a YIELD on their Ether holdings -  while also providing liquidity to the decentralized finance (DeFi) market.

Just How insane is that!

5/23

It's created by "wrapping" staked Ether on the Ethereum 2.0 network, which earns a yield through the network's proof-of-stake consensus mechanism.

6/23

C) Why Lido Finance?

You see, The Lido DAO is one of the (in my opinion) the best liquid staking protocol.

It has a Native token that is used to support ETH liquid staking

So, When users stake ETH on Lido, they receive stETH in exchange

Amazing right?

That's not all.

7/23

i.)

@LidoFinance uses wstETH to allow you stake your ETH holdings on multiple blockchains.

FOR EXAMPLE: The Article Below shows you how to Stake your ETH on MetaMask to earn yield and secure the Ethereum network from the comfort of your wallet. 🤯

blog.lido.fi/staking-ethere…

8/23

ii.)

Lido on Ethereum offers users - an alternative to centralized staking platforms - such as exchanges - whilst also negating the technical and financial challenges of running a solo node.

Check out Lido V2

blog.lido.fi/introducing-li…

9/23

iii.)

You can Have a Peep into this brief description of @Lidofinance and What they do.

https://twitter.com/wittyprince_/status/1627823584222580740?t=osobS7OrR9O0ESOhpmXGfw&s=19

10/23

D.)

So, What are the Use Cases of wstETH?

i. For starters, it can be used to provide liquidity for various decentralized exchanges, such as Uniswap, SushiSwap, and Curve.

This allows users to earn trading fees while earning staking rewards.

11/23

ii. wstETH can also be used in lending and borrowing protocols, such as Aave and Compound, as collateral.

This allows users to borrow other assets while maintaining their staking position.

12/23

iii.

wstETH can be used in yield farming strategies, such as those on Curve, which offer high APYs for providing liquidity.

By using wstETH, users can earn staking rewards while also earning yield on their liquidity.

13/23

iv.

wstETH can be used for various governance purposes, such as voting on proposals for decentralized autonomous organizations (DAOs) that use wstETH as a voting token.

14/23

v.

Another exciting use-case for wstETH is in the burgeoning world of metaverse gaming.

Games like Axie Infinity and The Sandbox allow users to earn in-game rewards that can be sold for wstETH on decentralized marketplaces.

15/23

Vi.
wstETH can be staked in Ethereum 2.0 & used to earn rewards as a validator, thereby contributing to the security of the network.

For example, by staking wstETH on @LidoFinance users can earn staking rewards & receive stETH which represents their staked wstETH holdings

16/23

E.)

17/23

So, What Use Cases do you suggest for wstETH?

i. A good use-case for wstETH would exist in the world of decentralized prediction markets.

Platforms like Augur and Polymarket allow users to bet on the outcomes of events like sports games or political elections...

By using wstETH to make their bets, users can earn a yield while also participating in these exciting new markets.

18/23

ii.

19/23
wstETH can also be used as collateral in synthetic asset platforms like @Synthetix_io.

By depositing wstETH as collateral, users can mint synthetic assets like sETH or sUSD, which can be used to trade various assets and commodities...

This creates new opportunities for investors and traders to participate in markets that they might not otherwise have access to.

20/23

iii.

wstETH can also be used in the rapidly growing world of NFTs

Projects like SuperRare & Rarible allow users to buy, sell, trade unique digital assets.

By using wstETH to make these transactions, users can earn a yield while participating in the booming NFT market.

21/23

Quite a Long read it was: Hope you enjoyed it!

F: My Advice to you:

Follow @LidoFinance

Follow @traderjoe_xyz

They have a lot in store for us in the DeFi World.

Also Follow me: @Wittyprince_ for more DeFi and Web 3 Threads.

22/23

Lastly (I promise)

Retweet the First Thread so others can have a look

Linking it below.

https://twitter.com/wittyprince_/status/1628011447451103232?t=CwbGMK9yVolgn_jBuEeAqQ&s=19

23/23