How to Spot Wrapped stETH Risks with Signals
Identify and monitor risk factors in your WSTETH holdings with health signals.
Wrapped stETH Risk Overview
wstETH is a wrapped version of stETH. Instead of rebasing, or changing account holdings daily it is similar to a c-token. It represents a pro-rata ownership of the staked ETH (stETH). When someone exits wstETH they are returned principal stETH + stETH earnings. Lido is a liquid staking protocol for POS blockchains. It gives you a liquid token that represents your staked collateral and earnings over time. Lido removes the need to run infrastructure and enabling continued participation in DeFi. ws...
Understanding Wrapped stETH Risk Signals
Fundamentally provides 7 types of risk signals to help you monitor your Wrapped stETH (WSTETH) position. These signals combine your Focus score, market timing (CBBI), and position sizing to alert you when conditions warrant attention.
Risk Signals for Wrapped stETH
- Concentration Risk: Your WSTETH position exceeds your bet size range
- Liquidity Risk: Your position is large relative to daily trading volume
- Volatility Risk: Large price swings combined with meaningful position size
- Focus-Timing Mismatch: High Focus but unfavorable market timing
- FOMO Risk: Good timing but low Focus score
- Cleanup Candidate: Very small position with low Focus
- Overweight Poor Timing: Above bet size range during unfavorable conditions
Volatility Context
Wrapped stETH currently exhibits stable price action with a 24-hour volatility of 0%. Volatility Risk signals help you understand when this volatility poses a risk to your position.
How Fundamentally Monitors Wrapped stETH Risks
View Your Signals
7 Risk SignalsOpen the Signals page to see which risk signals are active for Wrapped stETH. Each signal tells you specifically what risk is present in your WSTETH position.
Understand Each Signal
Clear ExplanationsConcentration Risk triggers when WSTETH exceeds your bet size range. Volatility Risk signals you to large price swings. Focus-Timing Mismatch warns when market conditions don't favor your position.
Take Informed Action
You DecideUse the Investment Calculator to determine how much Wrapped stETH to rebalance if needed. Signals are informational—you decide what action to take based on your strategy.
Concentration Risk
Signals when your WSTETH position exceeds the bet size range based on your Focus score.
Liquidity Risk
Monitors when your Wrapped stETH position is large relative to daily trading volume.
Volatility Risk
Tracks WSTETH price swings and signals when volatility affects your position.
Timing Signals
Combines your Focus for Wrapped stETH with CBBI market timing to identify mismatches.
Frequently Asked Questions
Fundamentally monitors 7 risk signals for Wrapped stETH: Concentration Risk, Liquidity Risk, Volatility Risk, Focus-Timing Mismatch, FOMO Risk, Cleanup Candidate, and Overweight Poor Timing. These combine your WSTETH Focus score, position size, and market conditions.
DeFi protocols like Wrapped stETH face smart contract risk, oracle manipulation, and regulatory uncertainty. Your WSTETH Focus evaluation should heavily weight audit history, bug bounty programs, and governance security.
Monitor Wrapped stETH Risk Signals
Stay informed about risks in your portfolio with Fundamentally's signal system.