$wstETH in Cosmos

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    Lido's stETH is a great asset for defi and maximizes capital efficiency. But surely you've already heard that countless times.

    But why wstETH?

    stETH is a rebasing token which means your actual balance changes, not the value of the token. wstETH simply wraps it and allows you to redeem for an increasing amount of stETH. This is pretty much risk free, similar to how wETH works. Its necessary as the rebasing nature of stETH does not work across bridges / bridges would have to build explicit support for rebasing tokens which would be a tremendous effort.

    Without an entity pushing for wstETH to get integrated in Cosmos, there was very little going on with it. Kujira ended up allowing it as collateral for USK, but only a handful of wallets ended up using it. Now Lido is stepping up and partnering with Neutron, to push for more integrations and incentivize initial liquidity across the Cosmos ecosystem.

    wstETH in Cosmos - A timeline

    Wanna know how to create those graphs?

    Check out this Github repo

    Lido wstETH in Cosmos

    Key takeaways 🎯 (for you lazy readers)

    Updated 10/20/23

    • Just under 1000 wstETH bridged in by around 90 different users
      • Around half of that has been bridged in by just 6 users
    • The majority of the liquidity is in Astroport on Neutron, due to high LP incentives
      • ~15% are on Kujira to mint USK which also is a good longer term play
    • The native neutron bridge is the most popular (~60%), however Squid is a little cheaper. Satellite is BY FAR the most expensive, do not use it for wstETH!
    • Net Inflows have slowed down a bit since the Astroport incentives launched, however user growth is steady