What is Bridging and Why Use It?
In simple terms, bridging means moving your crypto tokens from one blockchain network to another. For instance, if you hold Lido staked ETH (stETH) on Ethereum but want to use it on a Layer-2 like Arbitrum, Base or another chain, you’ll need to bridge it. The commonly used "lock-and-mint" bridge model - used by all currently recognized stETH and wstETH bridges - works by locking your stETH/wstETH on Ethereum and receiving an equivalent token representation on the destination chain.
This enables access to benefits like lower fees, faster transactions, and unique DeFi opportunities. Bridging broadens where you can use your stETH/wstETH, but it should be done with care to keep your tokens safe.
stETH vs wstETH: Why Wrap Before Bridging?
Lido provides two forms of staked Ether: stETH and wstETH (wrapped stETH). The key difference is that stETH is a rebasing token—its balance adjusts daily based on staking rewards or potential penalties—while wstETH is non-rebasing, keeping a fixed balance and reflecting rewards through an increasing exchange rate (as long as rewards exceed penalties). Most bridges and DeFi protocols aren’t compatible with tokens that automatically change balance, so bridging stETH directly is not recommended. In practice, if you send rebasing stETH through a typical bridge, the staking rewards often get trapped in the bridge contract on Ethereum and never reach your destination wallet.
To avoid missing out on rewards, it’s recommended bridging only wstETH, the non-rebasing version. Wrapping converts your stETH into wstETH at the current exchange rate (e.g., 1 wstETH might equal ~1.x stETH), preserving accrued rewards internally. When you unwrap later, you'll receive your original stETH plus any growth. By bridging wstETH, your staking rewards remain intact—reflected in the token’s increasing value—rather than getting lost.
Note: Some networks in the Optimism ecosystem—OP Mainnet, Unichain, and Soneium (as of May, 2025)—support bridging of rebasing stETH directly. However, for most chains, wstETH remains the safer default. Always verify whether a network officially supports stETH before bridging; if it doesn’t, wrap to wstETH first.
Types of Bridges: Native vs. Third-Party
Native Bridges (Layer-2 canonical bridges): These are the official bridges provided by a network—for example, Arbitrum’s canonical bridge for passing messages and transferring tokens from Ethereum to Arbitrum. Native bridges are typically open-source and deeply integrated with the destination chain’s security model. Using a native L2 bridge doesn’t introduce new trust assumptions - the bridge’s security is effectively the same as the rollup’s, which, in mature systems, ultimately depends on Ethereum. If a Layer-2 like Arbitrum or Scroll has its own native bridge, it’s generally the preferred route for moving stETH or wstETH.
Choosing a third-party bridge where a robust native option exists can increase risk, potentially fragment liquidity, and compromise long-term compatibility and support.
Third-Party Bridges: These are independent cross-chain services—such as Wormhole, Axelar, LayerZero, Chainlink CCIP, or Hyperlane—that enable bridging between diverse networks (e.g., Ethereum ↔ non-Ethereum chains) or to destinations without a native bridge. They operate their own validator networks, oracles, or custodians to lock (or burn) and mint tokens across chains. Because third-party bridges introduce additional trust assumptions and operational layers, they may carry higher risk. In practice, Lido DAO has only recognized third-party bridges for stETH/wstETH in cases where no safe native bridge exists, and often when aggregation across multiple bridge providers is supported. A good example is the wstETH bridge to BNB Chain, built and maintained through a collaboration between Wormhole and Axelar.
Before using any third-party bridge for stETH and wstETH, always confirm that the route is recognized by Lido or at the very least trusted by the broader network ecosystem.
Risks of Bridging stETH/wstETH
Smart Contract Bugs: Bridges rely on smart contracts to lock, mint, and release tokens across chains. These contracts can be complex, and any vulnerability may be exploited by malicious actors. A bug in a bridge contract could lead to loss of the tokens you bridged or have them permanently locked. Always use well-audited, reputable bridges to minimize this risk.
Validator/Signature Compromise: Many third-party bridges use a group of validators or a multisignature system to approve transfers between chains. If those entities are compromised (e.g. malicious actors stealing validator keys or insiders colluding), they could fraudulently mint or release tokens. This is a serious risk – a breach of a bridge’s signing authority can effectively steal all locked funds or create unbacked tokens out of thin air. While native L2 bridges tend to rely on the security of Ethereum (and are thus more resilient to this specific risk), third-party bridges might add an extra trust layer that could be a weak point.
Liquidity Risks: When you bridge stETH/wstETH, you receive a ‘mirrored’ token on the destination chain. This token’s value is meant to stay equal to the original token’s value. However, that ‘mirroring’ assumes you can redeem or swap it back 1:1 later. If the bridge encounters problems or if there’s low liquidity on the target chain, the bridged token might trade below its expected value. In extreme cases (for instance, if a bridge pauses operations or is exploited), the ‘mirrored’ token could lose parity because users doubt it can be redeemed. Always check that the chain you’re bridging to has adequate liquidity or demand for wstETH/stETH (for example, active DeFi pools or markets) so you can use or exit your position at an acceptable market price.
Operational User Error & Phishing: Bridging often involves connecting your wallet to external websites or dApps. This opens opportunities for malicious actors to create fake bridge websites or tokens. A common phishing trick is to mimic a legitimate bridge interface to steal your funds. There’s also the general risk of sending tokens to the wrong chain or address – if you make a mistake (like choosing the wrong network or token address), you could permanently lose your stETH/wstETH. To protect yourself, double-check URLs and use only official links (for instance, start from Lido Multichain page or documentation for bridging). Never trust random links from social media or DMs. It’s also wise to do a small test transfer first (covered below) to ensure you’ve set everything up correctly.
Best Practices for Safe Bridging
When bridging your stETH or wstETH, follow these best practices to keep your funds secure and avoid headaches:
Use Lido-recognized Bridges: Stick to bridging paths and platforms that the Lido community or official docs recognize. Lido Multichain page and Deployed contract docs list the supported networks and bridge contracts for stETH/wstETH. Using the recognized (treated as canonical) bridge for a given chain greatly reduces risk, as these have been reviewed and voted on by Lido DAO or Network Expansion Committee for security and reliability.
Wrap stETH to wstETH Before Bridging: Unless you are certain the destination chain fully supports rebasing stETH (OP Mainnet, Unichain, Soneium), always convert your stETH into wstETH first. Wrapping ensures your staking rewards won’t get stuck during the move. By sending wstETH over the bridge, you maintain your rewards and avoid the technical issues associated with rebasing tokens on other chains.
Verify Official URLs and Contracts: Only use official websites or apps for bridging. For example, access bridges via links on the Lido Multichain page, the target chain’s official site (e.g. Arbitrum’s bridge UI), or trusted aggregators. Make sure the URL is correct (look for HTTPS and proper domain names). Be cautious of search engine ads or unsolicited links that could be fake. If possible, verify the contract addresses of the tokens on the destination chain using Lido’s documentation to ensure you’re interacting with the genuine wstETH or stETH contract on that network.
Check Destination Liquidity: Before bridging a large amount, research the target chain’s ecosystem. Is there ample liquidity for wstETH or stETH on that chain’s exchanges or DeFi protocols? For instance, if you move wstETH or stETH to a network but there are no exchanges or lending markets for it, you might struggle to swap or use it. The Lido Multichain page shows some DeFi options and Total Value Locked (TVL) for each supported network, which can give a sense of activity. Ensuring healthy liquidity and usage on the destination will make your bridged token more useful and easier to trade back if needed.
Test with a Small Amount First: When using a bridge for the first time (or bridging to a new chain), send a small test amount of stETH/wstETH first. This way you can confirm the process works and that you receive the token on the destination chain as expected. If anything goes wrong or if fees turn out higher than anticipated, it’s much better to discover that on a $1 test than with your entire stash. Once the small transfer succeeds and you’ve verified the destination address and token, you can bridge the rest with more confidence.