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Mint and Burn Tokens

This guide covers minting and burning stETH-based tokens in Lido Staking Vaults.

Overview​

Vaults support three token formats for minting and burning:

  • Shares: Native vault shares representing ownership
  • stETH: Lido's liquid staking token
  • wstETH: Wrapped stETH with static balance

All operations require appropriate role permissions.

Mint Operations​

Mint Shares​

Mint native vault shares directly:

yarn start vo w mint <amount>

Mint stETH​

Mint stETH tokens (rebasing):

yarn start vo w mint-steth <amount>

Mint wstETH​

Mint wrapped stETH tokens (non-rebasing):

yarn start vo w mint-wsteth <amount>

Options for all mint commands:

  • -v, --vault <address>: Vault address (interactive selection if not provided)
  • -r, --recipient <address>: Recipient address (interactive selection if not provided)

Burn Operations​

Burn Shares​

Burn vault shares:

yarn start vo w burn <amount>

Burn stETH​

Burn stETH tokens:

yarn start vo w burn-steth <amount>

Burn wstETH​

Burn wrapped stETH tokens:

yarn start vo w burn-wsteth <amount>

Options for all burn commands:

  • -v, --vault <address>: Vault address (interactive selection if not provided)

Examples​

Mint Operations

# Mint 1 share with interactive selection
yarn start vo w mint 1

# Mint 32 stETH with specified vault and recipient
yarn start vo w mint-steth 32 \
  -v 0x1234567890123456789012345678901234567890 \
  -r 0x9876543210987654321098765432109876543210

# Mint 1 wstETH with interactive selection
yarn start vo w mint-wsteth 1

Burn Operations

# Burn 0.5 shares with interactive vault selection
yarn start vo w burn 0.5

# Burn 10 stETH from specific vault
yarn start vo w burn-steth 10 -v 0x1234567890123456789012345678901234567890

# Burn 1 wstETH with interactive selection
yarn start vo w burn-wsteth 1

Alternative: Dashboard Direct Commands​

You can also use dashboard commands directly:

Mint via Dashboard:

# Mint shares
yarn start contracts dashboard w mint-shares <dashboard_address> <recipient> <amount>

# Mint stETH
yarn start contracts dashboard w mint-steth <dashboard_address> <recipient> <amount>

# Mint wstETH
yarn start contracts dashboard w mint-wsteth <dashboard_address> <recipient> <amount>

Burn via Dashboard:

# Burn shares
yarn start contracts dashboard w burn-shares <dashboard_address> <amount>

# Burn stETH
yarn start contracts dashboard w burn-steth <dashboard_address> <amount>

# Burn wstETH
yarn start contracts dashboard w burn-wsteth <dashboard_address> <amount>

Mint Operation Details​

Process Flow​

  1. Permission Check: Verifies caller has MINT_ROLE
  2. Health Check: Validates vault health with fresh data
  3. Capacity Check: Ensures sufficient minting capacity
  4. Amount Validation: Confirms positive amount
  5. Transaction Execution: Mints tokens to recipient
  6. Health Verification: Ensures vault remains healthy

Requirements​

For Minting:

  • MINT_ROLE: Required permission on Dashboard
  • Fresh Health Data: Vault report must be recent
  • Minting Capacity: Vault must have available capacity
  • Valid Recipient: Cannot mint to zero address
  • Positive Amount: Must specify amount > 0

Security Features​

Health Validation

  • Prevents minting when vault is unhealthy
  • Requires fresh oracle data
  • Validates post-mint health

Role-Based Access

  • Only authorized addresses can mint
  • Granular permission control

Capacity Limits

  • Prevents over-minting beyond vault collateral
  • Maintains required reserve ratios

Burn Operation Details​

Process Flow​

  1. Permission Check: Verifies caller has BURN_ROLE
  2. Balance Verification: Checks caller has sufficient tokens
  3. Approval Check: Validates token approvals to Dashboard
  4. Amount Validation: Ensures valid burn amount
  5. Transaction Execution: Burns tokens from caller
  6. Liability Update: Reduces vault liability

Requirements​

For Burning:

  • BURN_ROLE: Required permission on Dashboard
  • Token Balance: Must own tokens being burned
  • Token Approval: Must approve Dashboard to spend tokens
  • Valid Amount: Must specify amount > 0 and ≤ balance

Token Approvals​

Before burning, ensure proper token approvals:

# Check your token balances and approvals
yarn start account r get-steth-allowance <address>
yarn start account r get-wsteth-allowance <address>

# Approve stETH to Dashboard contract before burning
# (Done via external wallet/contract interaction)

Access Control​

Required Roles​

MINT_ROLE

BURN_ROLE

Role Management​

# Check roles on vault
yarn start vo r roles

# Verify your account permissions
yarn start account r info

Troubleshooting​

Common Minting Issues​

Permission Denied

# Check roles
yarn start vo r roles

# Verify caller account
yarn start account r info

Vault Health Failure

# Update vault reports
yarn start report w by-vault-submit

# Check health after update
yarn start vo r health

Insufficient Minting Capacity

# Check vault overview
yarn start vo r overview

# Fund vault if needed
yarn start vo w fund <amount>

Common Burning Issues​

Insufficient Balance

# Check token balances
yarn start account r info

# Verify you own enough tokens to burn

Missing Approvals

# Ensure stETH is approved to Dashboard contract
# Check approval amounts
# Use wallet to approve if needed

Invalid Amount

# Ensure amount > 0
# Verify amount ≤ balance
# Use correct decimal precision

Integration with Other Commands​

Complete Vault Workflow Example

# 1. Check vault health
yarn start vo r health

# 2. Fund vault if needed
yarn start vo w fund 64

# 3. Mint tokens
yarn start vo w mint-steth 32

# 4. Monitor performance
yarn start vo r overview

# 5. Burn tokens if needed
yarn start vo w burn-steth 10