Premia Adds Support for wstETH

The Premia team has been heads down building through the bear. While you are waiting for the new vePREMIA tokenomics, Knox Vaults, and Premia v3 rollout, we’ve got an exciting new pool launching on Premia. Liquidity providing and options trading for wstETH is live now, with boosted liquidity mining rewards!

Everything you need to know about wstETH

Wrapped Staked ETH or wstETH is a wrapped version of staked ETH (stETH) on Lido. The accounting for the token is similar to Compound’s c-tokens where the token represents a pro-rata ownership of the staked ETH. When someone exits stETH they are returning principal stETH + stETH earnings.

In case you’re unfamiliar with it, Lido is the largest liquid staking protocol for proof-of-stake Ethereum. When you stake your ETH with Lido, you receive a liquid token that represents your staked collateral and earnings over time — stETH. stETH can further be wrapped to wstETH, the market we are adding support for. Lido removes the need for individual stakers to run infrastructure and enables continued participation in DeFi through the issuance of their liquid stETH token. stETH is minted and burned as stETH is wrapped and unwrapped.

Yield, yield, and more yield: Premia’s wstETH pools

Premia’s support for wstETH will only be on Arbitrum for this launch. If there’s community demand then Premia may explore adding support for mainnet in the future.

The wstETH pools might be our most stacked yield pool yet since LPs are getting 4 layers of yield on the call pool and 3 layers of yield on the put pool. LPs will be earning both $PREMIA and $LDO rewards in both the call and put pool.

wstETH Call Pool yield:

• ETH earned on staked ETH
• LDO liquidity mining rewards — paid out at the end of the month via claimable airdrop
• PREMIA liquidity mining rewards
• wstETH premiums

wstETH / DAI Put Pool yield:

• LDO liquidity mining rewards — paid out at the end of the month via claimable airdrop
• PREMIA liquidity mining rewards
• DAI premiums

So how to get in these pools and start earning yield?

How to wrap your stETH and get in our pools

You can wrap your stETH to wstETH by visiting the Lido website here, or you can swap any token to wstETH directly on Premia.

You can obtain stETH by either staking ETH with Lido or by purchasing stETH through the curve pool, and you might receive more stETH per ETH this way.

Once you have your wstETH head over to our pool page and make sure the chain is set to Arbitrum to start depositing.

Since stETH (and wstETH) are not pegged but representative tokens that can trade at a premium or a discount, always check to see if you’d be better over market buying or minting.

That’s it. We hope you’re as excited about the wstETH pools on Premia as we are!

Have questions about the Premia wstETH pools?

If you have any questions about the new Premia wstETH pools on Arbitrum, feel free to hop in our Discord and we’d be happy to answer any questions you may have.

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