Home > Kyber Content Hub > Lido Finance and KyberSwap partner to bring low slippage, optimized wstETH liquidity to Ethereum

Lido Finance and KyberSwap partner to bring low slippage, optimized wstETH liquidity to Ethereum

Kyber Network partners with Lido to bring the best wstETH liquidity to Ethereum Mainnet!

KyberSwap x Lido Finance bringing the best wstETH liquidity to Ethereum Mainnet

At a time when the market needs it most; liquid staking giant Lido Finance has partnered with KyberSwap, a leading next-gen DEX, to enhance wstETH liquidity on Ethereum.

Our ongoing Lido wstETH and stMATIC campaigns on Polygon, Arbitrum and Optimism have yielded excellent results with up to $15 million in daily volume across all pools.

And now, Lido Finance and KyberSwap are advancing their partnership together to bolster the Ethereum ecosystem with more diverse wstETH liquidity.

*Learn more about our current farms with Lido Finance on Polygon, Arbitrum & Optimism!

From November 18th, KyberSwap will launch its first phase of wstETH pools on Ethereum mainnet!

Important Details

In order to bootstrap wstETH liquidity across more diverse pairs, Lido Finance and KyberSwap are launching two farms. These farms and their corresponding pools will also complement the new wstETH/ETH pool, in which Kyber has seeded over $10 million.

Eligible Pools for Farm Incentives:
wstETH Lido KyberSwap Ethereum Farms List
  • wstETH-USDC (0.04%) ➡ (Pool rewards: 100,000 LDO + 180,000 KNC)
  • wstETH-LDO (0.3%) ➡ (Pool rewards: 7999.92 KNC)

*More pools will be added over the next phases with more rewards, so stay tuned to our announcements!

**Full list of eligible farms on Ethereum can be viewed here.

What is wrapped stETH (wstETH)?

Via Lido Finance, users stake any amount of ether and receive a derivative token called stETH, which can then be traded or lent on other platforms Lido’s wrapped stETH (wstETH) is stETH which is deposited into the stETH wrapper to create a new token called wstETH.

wstETH is a non-rebasing token that remains stable instead of changing daily to reflect staking rewards – staking rewards are only actualised when wstETH is unwrapped.

Wrapping stETH creates a DeFi-compatible version of the stETH token which allows for easier integrations with DeFi protocols such as KyberSwap.

  • Learn more about wstETH here

What’s the difference between stETH and wstETH?

stETH: stETH is a rebasing token, which means its supply automatically adjusts algorithmically to maintain a constant value. So when the peg is 1:1, Lido stakers’ rewards will come in the form of an increased amount of stETH via rebasing when you hold stETH.

wstETH: To mitigate this rebasing effect for pools and different contracts, there is wstETH. As mentioned above, wstETH is a non-rebasing token that remains stable instead fluctuating to reflect staking rewards. This ensures stETH does not get arbitraged out or cause issues as a result of the rebasing.

In summary:

  1. wstETH goes up against stETH due to the staking rewards
  2. wstETH goes up in ETH value
  3. stETH is pegged to the ETH value on Ethereum 2.0 as stETH is a derivative of ETH staked on the beacon chain, which is Ethereum 2.0

How to get wstETH?

The easiest way to get wstETH would be to buy directly on KyberSwap! KyberSwap users can also bridge your wstETH assets across supported chains (Optimism, Arbitrum and Ethereum) using our Multichain bridge.

Alternatively, stETH holders can wrap your tokens here.

Did you know?

stEth is a derivative token that lets you use your Ethereum while it’s staked.

Unlike stablecoins which are pegged to a USD value, stETH is more like an IOU whereby stETH holders can redeem their tokens for an equivalent amount of ETH at Eth 2.0.

Eth can always be staked 1:1, stEth historically has an APR of 4-12% depending on network conditions.

The stEth price is supposed to be close to 1 eth but is possible to decrease against eth as it’s price is only held by the available liquidity.

Farming wstETH Pools on KyberSwap Elastic

Deposit Liquidity
  • On KyberSwap, under “Earn ➡️ Pools”, select [Elastic Pools]
  • Add liquidity to the eligible pools at the fee tiers mentioned above.
  • Key in your deposit amount for the token pair. Approve the tokens if you have not done so earlier.
  • Input a custom price range in which you would like to provide liquidity by indicating the min price and the max price of that range. A narrower range gives your higher concentrated liquidity and more fees, while a bigger range would give a higher chance of the pool always being active (and get yield farming rewards).
  • After adding liquidity, you will receive an NFT (non-fungible token) that represents your liquidity position. (You can view your liquidity positions on the “Earn ➡️ My Pools” page.)
  • Note: While you can deposit both ‘Out of range’ and ‘In range’ liquidity positions, only your ‘In range’ liquidity positions will earn you farming rewards.If your ‘Out of range’ liquidity position becomes active again, and you’ve already deposited it into the farming contract, you’ll start earning rewards for this liquidity position as well.So make sure when you add liquidity, input a min and max price for your chosen token pair that would not go out of range!
Staking
  • On the “Farm” page, select the same farm you added liquidity for. Click [Deposit] and select your liquidity position NFT (ID number). Click [Deposit Selected], approve and wait for your transaction to be confirmed.
  • IMPORTANT* After depositing your liquidity position NFT, click the [+] button to stake your deposited NFT.
  • Note: If the [+] button is disabled, it means that you haven’t deposited your NFT liquidity positions into the farming smart contract yet. You MUST stake your liquidity position NFT in the farm to start accumulating rewards (depositing the liquidity position NFT earlier is not enough).
Harvesting & Claiming Rewards
  • On the “Farm” page, click the “axe” icon button on the far right of the farm you want to harvest from, or the “Harvest All” button.
  • A “Harvest” popup will be displayed and you can see the rewards you have accumulated so far in terms of total dollar value and in terms of individual tokens. Click on “Harvest”.
  • To claim rewards, click on [Vesting] on the Farm page and click on [Claim] button under [Vesting Schedules] to claim the harvested rewards that have been unlocked. If there is no vesting period, your rewards are unlocked immediately after harvesting them.
Unstaking
  • To unstake your NFT, simply click on the [-] button on the Farm.
  • You will see a popup prompting you to select the liquidity position NFT you wish to unstake. Make your selection and click [Unstake Selected]. Confirm and wait for your transaction to go through.

For more detailed instructions on farming with Elastic pools, please visit: https://docs.kyberswap.com/guides/how-to-farm

You can also view farming tutorials directly on KyberSwap or watch our tutorial video here:

Farming on Ethereum not for you? Check out our other KyberSwap farms on Polygon, Avalanche, Arbitrum & Optimism!

Earn organic yields safely with competitive APRs and stablecoin pairs on KyberSwap.

. . .

About Kyber Network

Kyber Network is building a world where any token is usable anywhere. KyberSwap.com, our flagship Decentralized Exchange (DEX) aggregator and liquidity platform, provides the best rates for traders in DeFi and maximizes returns for liquidity providers.

KyberSwap powers 100+ integrated projects and has facilitated over US$10 billion worth of transactions for thousands of users since its inception. Currently deployed across 14 chains including Ethereum, BNB Chain, Polygon, Avalanche, Fantom, Cronos, Arbitrum, Velas, Aurora, Oasis, BitTorrent, Optimism and Solana.

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