Lido wstETH (WSTETH) is a wrapped version of stETH, designed to be compatible with DeFi protocols that do not support rebasable tokens. Here's how it is used:

1. Compatibility Layer: wstETH acts as a layer of compatibility to integrate stETH into other DeFi protocols, especially bridges to Layer 2 (L2) chains and other chains, where rebases do not work for bridged assets by default.

2. Constant Balance Mechanism: Unlike stETH, which rebalances daily as staking rewards come in, wstETH maintains a constant balance. Instead, it uses an underlying share system to reflect the earned staking rewards.

3. Token Wrapper: The wstETH contract can be used as a trustless wrapper that accepts stETH tokens and mints wstETH in return. When unwrapped, the contract burns the user's wstETH and sends the user locked stETH in return.

4. Staking Shortcut: Users can send ETH directly to the contract address and receive wstETH in return. The contract will stake the ETH and wrap the received stETH seamlessly under the hood.

5. Integration with Aave: wstETH is supported on Aave V3, allowing users to borrow assets against their wstETH while still earning ETH staking rewards. This integration enables advanced strategies like leveraged Ethereum staking.

6. Staking Rewards: wstETH accrues staking rewards at the same rate as regular stETH. Although the rewards are not visible while wstETH is held, they are reflected when unwrapped.

Overall, wstETH provides a convenient and compatible way to utilize stETH in various DeFi protocols, enhancing the usability and flexibility of Lido's staking services.

To store your Lido wstETH (wrapped staked ETH) securely, you have several options:

1. Hardware Wallet: This is one of the most secure methods. You can use a hardware wallet like Ledger or Trezor to store your wstETH offline. These devices support ERC-20 tokens, which includes wstETH.
2. Software Wallet: You can use a web3-compatible software wallet like MetaMask. MetaMask is commonly used with Lido and supports wstETH
3. 2
4. . Make sure to add the wstETH token contract address to your MetaMask wallet to view your balance.
5. Custodial Solutions: For institutional or high-net-worth individuals, custodial solutions like Taurus-PROTECT offer banking-grade custody for stETH (and by extension, wstETH).
6. DeFi Platforms: Some DeFi platforms allow you to deposit your wstETH and potentially earn additional yield. However, this comes with smart contract risks, so be cautious.
7. Centralized Exchanges: Some centralized exchanges support wstETH, but keeping large amounts on exchanges is generally not recommended for security reasons.

When storing wstETH, keep in mind:

• Always double-check addresses when transferring.
• Keep your private keys or seed phrases secure and offline.
• Consider using a hardware wallet for large amounts.
• Regularly update your wallet software.
• Be cautious of phishing attempts and only use official websites and apps.

Remember, wstETH is a wrapped version of stETH, which represents your staked ETH on the Lido protocol. Your stETH balance will automatically increase over time as staking rewards accrue, even if your wstETH balance remains constant

To buy Lido wstETH (WSTETH) tokens, follow these steps:

1. Wrap Your ETH or stETH to wstETH:

   • Visit stake.lido.fi/wrap.
   • Connect your wallet.
   • Choose the amount of ETH or stETH to wrap.
   • Press 'Unlock tokens & wrap'.
   • Confirm the transaction in your wallet.

2. Use a Crypto Exchange:

   • You can also purchase wstETH directly from crypto exchanges. For detailed guides, refer to BitScreener or Bitcompare.