kyberswap partners w lido finance

KyberSwap and Lido Finance previously partnered to bring stMATIC and wstETH liquidity on Polygon, Arbitrum and Optimism. And that partnership has so far proven successful with a noteworthy $15m in daily trading volume across all Lido pools.

KyberSwap and Lido, a liquid staking platform have announced a new partnership to bring wstETH liquidity to Ethereum. wstETH is a non-rebasing token that retains its stability rather than changing to reflect staking rewards. That sounds like a mouthful so let’s explain.

Here’s how it works: users can stake any amount of Ether through Lido Finance in exchange for a derivative token called stETH, which they can trade or lend on other platforms. stETH is often close to but not exactly 1:1 with ETH. Then, wstETH is the wrapped version to make it DeFi friendly. Lido Finance and KyberSwap have launched two farms to increase wstETH liquidity across more varied pairs.

The new wstETH/ETH pool, in which Kyber has funded nearly $10 million, will be complemented by these farms and the accompanying pools. The platforms intend to add more pools and more rewards in subsequent phases.

Here are the eligible pools for farm incentives

wstETH-USDC (0.04%) ➡ (Pool rewards: 100,000 LDO + 180,000 KNC)
wstETH-LDO (0.3%) ➡ (Pool rewards: 7999.92 KNC)

How to Get wstETH

Purchasing wstETH on KyberSwap is the easy way to get it. Users can leverage KyberSwap’s Multichain bridge to bridge wstETH assets between supported chains like Ethereum, Arbitrum, and Optimism. Additionally, stETH holders can also wrap their tokens here.

KyberSwap, powered by the Kyber Network, is fostering a world where any token has a purpose. KyberSwap is a decentralized exchange (DEX) aggregator and liquidity platform. It offers traders the best rates in DeFi and ensures liquidity providers get the best returns.

Kyber ensures both security and ease of use. So far, it has more than 100 integrated projects. KyberSwap has also facilitated more than $11 billion worth of transactions for thousands of users since its launch.

Using Kyber offers flexibility since it is deployed across 13 chains. The chains include Ethereum, BNB Smart Chain, Polygon, Avalanche, Fantom, Cronos, Arbitrum, Velas, Aurora, Oasis, BitTorrent, Optimism, and ETHPoW.

What Should I Know About stETH and wstETH?

As mentioned earlier, stETH is a rebasing token. So, its supply is automatically adjusted by an algorithm to keep its value constant. Therefore, when the peg is 1:1, Lido stakers will receive rewards in the form of more stETH through rebasing when they hold stETH.

The wstETH exists to lessen this rebasing effect for pools and other contracts. As earlier said, wstETH does not adjust in this way. This means the token does not fluctuate to reflect staking rewards but stays steady. So it’s better for use in DeFi applications. This guarantees that the rebasing won’t create any forced selling of stETH due to loss of value or cause other problems.

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