To participate in Bumper’s LSTfi wstETH-USDT market, traders can either deposit Lido wrapped staked ETH on Arbitrum into the protocol, or buy wstETH on the market to essentially trade ETH market volatility.
There are two suggested methods to do this, we detail them below:
The simplest way is to pick up the wstETH token from a DEX on the Arbitrum chain.
With this method you won’t receive the staking benefits of Lido.
In order to acquire wstETH through Lido, ready to use on Bumper, you should follow these steps:
1. Buy ETH token on Ethereum mainnet. Using an on-chain wallet such as MetaMask, Rabby or hardware wallet such as Ledger and a DEX like Uniswap.
2. Stake AND wrap your ETH in Lido - https://stake.lido.fi/wrap/. Once staked, Lido will return wstETH tokens to your wallet.
3. Bridge your wstETH from Ethereum mainnet to Arbitrum One. A recommended bridge is provided directly by Arbitrum.
4. Switch your wallet to Arbitrum and you’re now ready to use your wstETH with Bumper.
With this path, your principal asset (ETH) is staked and you benefit from the annual yield whilst unlocking trading opportunities to accumulate more wstETH in Bumper.
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, like Bumper, 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. This will also mean the value of wstETH may differ slightly.