What is Lido and wstETH?
Lido is a liquid staking protocol that allows users to stake their ETH and earn staking rewards for securing the Ethereum blockchain. Users receive the liquid derivative stETH which entitles them to staking rewards, and can be used in DeFi in a variety of ways. One example of this is using stETH as collateral for a loan. Lido improves capital efficiency across the industry and is Ethereum’s leading liquid staking protocol with the deepest liquidity. The total supply of stETH reflects the amount of ether deposited into the protocol combined with staking rewards, minus potential validator penalties. stETH tokens are minted upon deposit at a 1:1 ratio.
Lido solves the problem of removing the strict requirements of Ethereum staking. These requirements include users running their own nodes and staking 32 ETH. By removing these requirements it allows anyone to participate in securing the network. Lido’s relevance has grown significantly in recent years and RedStone is thrilled to support this growth by providing the price feed of wrapped stETH on The Binance Smart Chain. This allows builders in the BNB ecosystem to now access Lido in a way that was not possible before.
How does RedStone Support wstETH on BNB?
We have implemented our Push and Pull models to bring the price of wstETH on-chain.
RedStone’s Push Model sends data to the blockchain at a fixed time schedule ensuring that prices are constantly brought on-chain regardless of market events. This model is compatible with other oracle providers and therefore can be easily implemented into existing projects.
RedStone’s Pull Model, or on-demand model, provides price feeds only when necessary for dApps. This results in reduced gas fees paid to bring data onto the blockchain and reduces latency. RedStone achieves this by storing data on RedStone’s data delivery layer, an off-chain solution, before pushed on-chain. In both the push and pull models the price of wstETH is taken from multiple sources, preventing a single source of failure or manipulation of the price for BNB users.
About RedStone
RedStone is the quickest growing modular oracle delivering diverse, high-frequency data feeds to EVM Layer1, Layer2, Rollup-as-a-Service networks, and beyond, i.e., Starknet, Fuel Network, Casper or TON. By responding to market trends and developer needs, RedStone can support assets not available elsewhere. The modular design allows for data consumption models adjusted to specific use cases, i.e., capital-efficient LSTfi and early support of LRTs.
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