Guide: Liquidity mining with stETH on Balancer

August 16, 2021 in Ethereum, Guides by Lido

Lido has integrated with Balancer v2 to launch a wstETH/WETH MetaStable pool with a liquidity mining program. This implementation allows users to have access to more forms of stETH liquidity as well as improving the efficiency and interconnectivity of protocol integrations.

This initiative is also based off of this recent proposal.

Balancer is an automated portfolio manager and AMM (automated market maker) trading platform that allows users to efficiently trade assets through the use of their widely used liquidity pools at low (gas) fees.

Users can provide wstETH (wrapped stETH) as liquidity to the respective pool to earn trading fees and additional incentives. The pool will be allocated 100,000 LDO for the first month, with up to 10,000 BAL allocated from the Balancer team as well.

For direct access to the wstETH/WETH MetaStable pool, visit app.balancer.fi/metastablepools#/pool/0x32296969ef14eb0c6d29669c550d4a0449130230000200000000000000000080.

Getting Started on Balancer

Wrapping stETH for wstETH

Users who hold stETH will need to wrap their stETH to wstETH beforehand to interact with Balancer. 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.

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.

Providing wstETH liquidity

Head over to Invest.
Locate and select the wstETH/WETH pool.
On the right under “Invest”.
Input the amount you would like to provide.
Confirm the final transactions.

Removing wstETH liquidity

Head over to Invest.
Locate and select the wstETH/WETH pool.
On the right, select “Withdraw”.
Input the amount you would like to withdraw.
Confirm the final transactions.

How to view your LP positions

You can view your LP positions/investments at app.balancer.fi/#/, after providing liquidity to a pool and connecting your wallet.

How to claim BAL liquidity mining rewards

Head over to claim.balancer.fi/# to manually claim your BAL liquidity mining rewards.

Connect your wallet and select “Next”.
Select “Claim”.
Confirm the transactions to claim your BAL.

To claim your LDO rewards, visit claim-lido.balancer.fi and connect your wallet.

Future Integrations

With wstETH now added onto Balancer v2, this allows for more interconnected integrations with other protocols. This also allows for the expansion of stETH liquidity to not originate on only one platform (Curve). We hope to see more integrations in the future to make stETH a staple in the liquid staking ecosystem and to increase the liquidity of stETH.