Question

What is a wrapped cryptocurrency?

Answer 1

A wrapped cryptocurrency is a tokenized version of a cryptocurrency that has been "wrapped" or pegged to another blockchain's native asset. This allows the cryptocurrency to be used on different blockchain networks. For example, wrapped Bitcoin (WBTC) is a token on the Ethereum blockchain that represents Bitcoin.

Answer 2

A wrapped cryptocurrency is a tokenized version of a cryptocurrency that is pegged to the value of the original asset. It is typically created to enable the use of the underlying cryptocurrency on different blockchains or within decentralized applications (DApps). Wrapped cryptocurrencies are commonly used in decentralized finance (DeFi) platforms to facilitate trading and liquidity provision across different blockchain networks.