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Looking at wstETH (and a few sprinkles of stETH) in Defi on Etherscan, we see the following (as of 14th November 2024).
A majority of (w)stETH is in money-markets, followed by Re-staking platforms. There is quite a big presence of (w)stETH on alternative layer-1s and layer-2 settling on Ethereum. Emergent use-cases (read: supply sinks) are decentralised compute (AO by Arweave is minted by depositing (w)stETH) and AI agents.
DEXes have a very small (approximately 278 million USD) but very important presence currently, since secondary markets power the primary use-case (money-markets).
This is somewhat observable on https://dune.com/LidoAnalytical/Lido-Finance-Extended, money-markets dominate the primary use-case in defi. There is an out-sized presence of (w)stETH on Aave and Maker (including Sky and Spark as well as the canonical Maker protocol here). Maker and its many flavors capture a significant majority of (w)stETH deposits, closely followed by Aave and Compound.
This is usually a sign of a mature asset, used as a store of value and is collateral-worthy. This view does not capture stETH used as collateral in off-chain finance, such as: https://x.com/wintermute_t/status/1830585077656588659.
AVSes secured by restaking is the next big thing in defi, albeit with no clear growth or adoption on the AVS front yet. Protocols like Mellow Protocol (using Symbiotic underneath) are big proponents of Lido (business deals?), but Eigenlayer is still the largest re-staking platform.
Ether.fi has launched a very public vampire attack against multiple liquid re-staking protocols. I personally do not know if they have the pedigree to maintain and manage staking and re-staking infra, but it is a credible threat with USD 616 million siphoned off of Lido already. That being said: this liquidity would have gone anyway, and there is always the chance that the liquidity returns once incentives dry out.
Across alt Layer-1s (Polygon, Gnosis) and Layer-2s (Arbitrum, Optimism, Base, Scroll), it is a similar structure: money-markets dominate the utility use case with Aave being the primary venue for (w)stETH holders (exceptions: Gnosis chain where Spark and Balancer dominate, Base, where Morpho and Moonwell have a head start).