wstETH is a wrapped version of stETH. Due to the nature of Lido, the amount of stETH on your balance is not constant - it changes daily as staking rewards come in. As some DeFi protocols require a constant balance mechanism for tokens, wstETH keeps your balance of stETH fixed and uses an underlying share system to reflect your staking rewards.
You wrap 100 stETH to 99.87 wstETH.
You continue to get rewards on your wstETH.
When you unwrap your wstETH, you receive 101 stETH
How to wrap stETH for wstETH
Head over to Wrap.
Connect your wallet at the top right.
Input the amount of stETH you would like to wrap to wstETH.
Select “Unlock token to wrap” and approve the transaction.
Confirm the final transactions.