Lido’s wstETH Now Available On Aave V3 On BNB Chain
In Brief
Lido launches wstETH on Aave V3 BNB Chain, allowing users to deposit wstETH as collateral and borrow wstETH on the BNB Chain using Aave.
Liquid staking protocol Lido announced the launch of wrapped stETH (wstETH) on Aave V3 BNB Chain, allowing users to deposit wstETH as collateral and borrow wstETH directly on the BNB Chain using Aave. This integration expands the decentralized finance (DeFi) use cases on the BNB Chain ecosystem by introducing new possibilities for users and further enhancing its DeFi capabilities.
On the V3 BNB market, wstETH has several key parameters, including a supply cap of 1,900 wstETH, a borrow cap of 190 wstETH, a loan-to-value (LTV) ratio of 72%, a liquidation threshold of 75%, and a liquidation bonus of 7.5%. Additionally, the ETH-correlated eMode for wstETH within Aave V3 on BNB Chain provides higher leverage with an LTV of 93%, a liquidation threshold of 95%, and a liquidation penalty of 1%.
In order to get started, users must wrap their stETH using the Wrap and Unwrap staking widget or DEX Lido integrations, then bridge wstETH to BNB Chain. Users can visit portalbridge.com, select Ethereum as the network and wstETH as the asset in the “From” section, then select BNB Chain as the network in the “To” section. After connecting wallets to both networks and selecting the desired amount to bridge, they can approve and complete the transaction.
Following these procedures, users are encouraged to access the Aave application, switch to BNB Chain V3, and connect their wallet to supply or borrow wstETH, unlocking new DeFi use cases.
Lido Contributors Introduce wstETH On BNB Chain
Lido is a liquid staking platform designed for Ethereum and Polygon, offering products like liquid staking derivative token contracts and supporting smart contract infrastructure for native token staking services.
Through Lido’s smart contracts, users can stake ETH on Ethereum, receiving corresponding liquid staking derivative tokens. These staked tokens are then utilized to operate validators on the respective networks, contributing to the Proof-of-Stake (PoS) consensus mechanisms of each blockchain. Lido’s staking solutions are particularly suited for users who face economic or technical challenges that prevent them from running their own validators.
Lido Contributors launched wstETH on the BNB Chain in August. This allows users to bridge their wstETH to the BNB Chain, providing them with access to a variety of decentralized finance (DeFi) protocols within the BNB Chain ecosystem. This expansion also represents Lido’s first integration with a Layer 1 blockchain outside of the Ethereum network.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in crypto, AI, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in crypto, AI, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
