Wrapped stETH (WSTETH) is a tokenized version of staked Ether (stETH) on the Ethereum blockchain. stETH represents a user’s staked ETH in the Lido protocol, allowing users to earn staking rewards while maintaining liquidity. WSTETH is created by depositing stETH into a smart contract, which mints an equivalent amount of WSTETH tokens. These tokens can be traded and used in DeFi applications, providing users with flexibility in managing their staked ETH holdings.