noun
Internet Slang
wrapped token
RAPT TOH-ken · noun · slang
A token representing another asset for use on a different chain.
0
Definitions
1
A token pegged 1:1 to an underlying asset so it can be used on a chain or protocol where the original can't, such as Wrapped Bitcoin (WBTC) on Ethereum.
“I wrapped my BTC into WBTC to use it in Ethereum DeFi.”
by community
0
wrapped token In A Sentence
I wrapped my BTC into WBTC to use it in Ethereum DeFi.
Origin & Usage
DeFi mechanism enabling cross-chain and cross-protocol asset use.
People Also Ask
What is a wrapped token?
It is a token pegged 1:1 to an underlying asset so the asset can be used on a chain or protocol where the original cannot, such as WBTC on Ethereum.
Why wrap a token?
Wrapping lets an asset like Bitcoin participate in another ecosystem's DeFi, since the native coin isn't directly compatible with that chain.
Is a wrapped token the same value as the original?
It is designed to be, since each wrapped token is backed 1:1 by the underlying asset held in reserve or custody.
Comments 0