Wrap & Unwrap stDOT
Wrap tab helps you to wrap your stDOT or xcDOT and receive wstDOT
To wrap your stDOT or xcDOT tokens, you should go to the Wrap & Unwrap page.
On the Wrap & unwrap page, choose the "Wrap" mode.
Have you already connected your Metamask account? If not, you will see the "Connect Wallet" button. Click on it, and you will be automatically connected or navigated to the Metamask browser extension installation page (if you don't have it already installed).
If you see a card like that one below, you're all set up and ready to wrap some stDOT or xcDOT tokens.
Three balances from your Metamask account are displayed at the top of the card: xcDOT, stDOT, and wstDOT. The wstDOT tokens show the number of wrapped tokens.
Open your Metamask browser extension. If you don't see the xcDOT, stDOT, or wstDOT tokens there, click on a small "+" button next to the corresponding balances at the top of the card.
The wstDOT token simply represents user shares in the stDOT tokens. The wstDOT token can be used in other DeFi applications, where it is necessary to have a non-rebaseable token (with stable balance, unlike stDOT, which balance always changes due to the rewards/losses accumulation). The wstDOT token price is equal to the price of one share of the stDOT token, so if Lido receives a lot of rewards, the price can increase dramatically.
You have two options of wrapping your tokens to choose from. You can wrap your stDOT and receive wstDOT. To do that, you need to have stDOT tokens on your account. (To find out how to get them, see the Stake page).
Or, you can choose to wrap your xcDOT tokens directly. This allows you to save on gas when compared to swapping from xcDOT to stDOT to wstDOT.
Pay attention to the transactional fees at the bottom of the card. You need to have enough GLMR in your Metamask account to perform a wrap operation. GLMR is Moonbeam’s native token. Learn more on the Moonbeam official site.
To wrap xcDOT or stDOT tokens, enter the desired amount of tokens in the input box. To be able to wrap some tokens, you need to approve them first. In that case, you will see the "Unlock Tokens" button.
Click on it and confirm a transaction in the Metamask popup. Wait for the transaction to be confirmed.
After that, you will see that the "Unlock Tokens" button has changed to the "Wrap" button.
Repeat the steps mentioned above click on the button, confirm the transaction in the Metamask popup, and wait for the transaction to complete successfully.
Your wstDOT tokens will automatically continue to receive rewards from staking
On the Wrap & Unwrap page, choose the Unwrap mode.
The "Unwrap" operation is similar to "Wrap", except you don't need to approve your tokens. Enter the desired amount of wstDOT in the input box. In the popup window from Metamask, confirm the Unwrap transaction and wait for it to be confirmed. After the Unwrap operation, you will receive a certain amount of the stDOT tokens according to the current exchange rate.