New wstETH L2 deployments will be "mint and burnable" from the get go, while old ones will get an upgrade to the mint and burn mechanism utilising CCT standard. An upgrade means that there will be no need for two wstETH tokens to coexist or for a liquidity migration. Existing wstETH will be upgraded, and no actions are required by integrators. Changes to associated risks are minimal with the implementation of mitigation measures. Fallback mechanisms in our custom design ensure commitment to security. XXL transactions use a multi-bridge setup by default.

Users don’t need to wait 7 days for bridging back to the mainnet. Your favorite vaults like @veda_labs GGV and @mellowprotocol stRategy get to operate much more efficiently, and the level of risk is reduced for L2 positions. Applicable to other cross-chain vaults as well!

DEX “peg” gets easier to hold ground across all the L2s and MMs like Wintermute, STS, or any other with a proper DeFi trade desk have a natural incentive to start arbitrage wstETH and stETH onchain when the opportunity is good enough. No more missed opportunity risks for them! If they don’t, I sure will :) .. that means more sophisticated actors will beat me to it 😁 This results in an increase in volume for all major DEXs on wstETH pairs, where I expect Fluid to perform well due to its unique setup. More trades = higher APY = higher LP TVL

Rebalancing collateral across @aave instances (or other markets) gets to be blitz fast, so @twynexyz or regular LM users can change instances depending on the rates to arbitrage and balance them out. Loopers like Cian, DeFiSaver, and Contango enter a “mainnet” like environment, where looping becomes optimal and safer than before. There is no need to rely on L2 swaps (and lose principal on smaller liquidity buckets due to swap size) as they can bridge to the mainnet, execute the trade, then bridge back to repay the loan. Gets executable in minutes instead of weeks per loop!

L2s get more TVL and wETH utilisation on lending markets as a direct effect of increased traction on wstETH looping. It's a great performance improvement for all major chains and new ones that battle for user traction.

Risk stewards like Chaos Labs and Llama Risk or vault curators like Steakhouse, MEV Cap, Re7 get to apply better parameters to wstETH due to liquidity improvements and risk reduction (remember that loopers can tap into mainnet liquidity now)