I’ve been working on a blog post for Lido’s wstETH. Stuff like:
-What is it?
-Why do we have wstETH?
-What can you do with wstETH?
The question I am stumped on is:
What is the future of wstETH?
I believe the Lido community does not have a unified vision for wstETH and wanted to start this thread so people can share their thoughts and opinions on the matter.
The questions I have are:
-Does wstETH become bigger than stETH due to issues integrating stETH with Uniswap, L2’s launching this year?
-If we don’t promote wstETH will Lido adoption stall due to integration issues with stETH?
-Should we make wstETH the default token when users deposit ETH into Lido?
-If it does become bigger, should Lido devote resources to abstract wstETH away from users so they only hold stETH?
-If we do make wstETH the default token, should we rebrand the name? Because wstETH seems suboptimal from a branding perspective.
I think a lot of these questions are easy to answer as long as the Lido community agrees on a plan of action. Right now most DeFi users are power users that don’t mind the complexity of wrapped assets but with L2’s launching in the next 12 months this could become a user experience headache.
I was able to get some of these questions addressed at the “Twitter Spaces” meeting Lido hosted yesterday and took some notes. I might have missed some important things or represented them badly so please feel free to add comments where necessary.
-Vasiliy said that to abstract stETH rebase functionality from the user and make it compatible across L2’s would take integrating with every individual wallet, protocol, and software that interacts with stETH/blockchain. A herculean effort that doesn’t scale very well.
-Konstantin Lomashuk echoed Vasiliy comments saying that Lido decided on the rebase function because it was the simpliest way for stETH holders to understand.
-Itamar Lesuisse from Argent(a wallet provider) says that wallets are already working on abstracting a lot of complexity from users and that Argent might have to do this work anyway. Lido at the protocol layer shouldn’t have to worry about it.
-Georgios asked Itamer Lesuisse how difficult or time consuming it is to abstract the complexity of wrapped assets/stETH from users. Itamar said that it is, but it must be done anyway.
Let me know if I missed anything or misrepresented any words that were said!