Question

What is a wrapped token?

Answer 1

A wrapped token is a representation of another cryptocurrency or asset on a different blockchain. It is created by depositing the original asset into a smart contract, which then mints an equivalent amount of the wrapped token on the new blockchain. This allows the asset to be used in decentralized applications on other blockchains that may not support the original asset.

Answer 2

A wrapped token is a token that represents another asset, usually a native asset from another blockchain, in a different blockchain's ecosystem. It is created by "wrapping" or locking the original asset in a smart contract on one blockchain, and then issuing an equivalent amount of tokens on another blockchain. This allows users to use assets from one blockchain on another blockchain, enabling cross-chain interoperability.