Glossary Term
Wrapped Token
A wrapped token is a digital asset representing another cryptocurrency, typically on a different blockchain, enabling interoperability and wider usage within various DeFi ecosystems. Wrapped tokens preserve the value of the original asset while allowing it to be used on platforms it was not originally designed for.
Beginner
Technology
Crypto Terminology
Wrapped Token: what is it?
Examples
- 1
Using wBTC on Solana to trade Bitcoin on a Solana DEX.
- 2
Earning yield on wrapped ETH through a Solana-based lending protocol.
- 3
Participating in multi-chain NFT drops with SOL-wrapped assets.
Common Use Cases
DeFi trading and loan operations on Solana using assets from other chains.
Liquidity provision and yield farming in Solana pools.
NFT/minting platforms accepting wrapped tokens.
Pro Tips
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Always verify the smart contract/custodian backing a wrapped token.