Wrapped assets are cryptocurrencies or other digital assets that are tokenized on a different blockchain than their native network. This process involves locking the original asset in a smart contract and issuing an equivalent “wrapped” version on the target chain. They enable interoperability and allow assets to be used in decentralized finance protocols on otherwise incompatible blockchains. Wrapped Bitcoin is a common example.
Context
The utility of wrapped assets is increasing as the demand for cross-chain functionality grows within the digital asset ecosystem. While offering expanded liquidity and access to various DeFi applications, they also introduce centralization risks associated with the custodian of the locked native asset. Security audits and transparent custodianship remain critical concerns for these interoperability solutions.
The FAssets protocol unlocks dormant XRP capital for DeFi yield generation, utilizing a Core Vault to optimize collateral efficiency and drive network TVL.
We use cookies to personalize content and marketing, and to analyze our traffic. This helps us maintain the quality of our free resources. manage your preferences below.
Detailed Cookie Preferences
This helps support our free resources through personalized marketing efforts and promotions.
Analytics cookies help us understand how visitors interact with our website, improving user experience and website performance.
Personalization cookies enable us to customize the content and features of our site based on your interactions, offering a more tailored experience.
