2 August 2023
incomp. article?m read
A cryptocurrency called Wrapped XRP is tethered to XRP and is usable on blockchains other than the XRP Ledger. The wrapped asset can be exchanged 1:1 for XRP that is kept in reserve by the custodian and used to wrap and unwrap wrapped XRP.
Due to arbitrage, the price of wrapped XRP is fixed to XRP. Traders wrap the less expensive XRP and then sell it, bringing down the price of wrapped XRP when its price is higher. Traders buy and unwrap wXRP and sell XRP to raise the price of wXRP when the price of wrapped XRP is lower. Thus, a stable peg is established between the two tokens.
By wrapping XRP, you can diversify your holdings on one blockchain while using the DApp ecosystem of another. You can start by buying Wrapped.com's ERC-20 Wrapped XRP (wXRP). By opening an account with Wrapped, you can start wrapping XRP. Hex Trust, a licensed custodian, manages the wXRP reserves. On platforms like Uniswap and Sushiswap, you can utilize wXRP to stake in liquidity pools by offering it in a token pair.
Coins and tokens from several blockchains are likely to be included in a typical cryptocurrency portfolio. The management and investment of all these assets, however, can be challenging, particularly when blockchains are not interoperable. Using wrapped tokens to connect currencies from one chain to another is one technique to get around this. We now have a new wrapped asset to work with Wrapped XRP (wXRP). The wrapped version of Ether (ETH) is already common sights on Decentralized Finance (DeFi) platforms and exchanges.
There are various benefits to wrapping XRP for both XRP owners and users on the target blockchain:
Since December 2021, Wrapped has offered ERC-20 Wrapped XRP on Ethereum and already handles a collection of wrapped tokens. Hex Trust, a licensed and insured custodian in Asia, is where the wXRP reserves are kept.
How do I package and unwrap XRP?
Which DeFi apps are compatible with wXRP?
Token wrapping is a great way to increase cross-chain functionality and interoperability. If you're a supporter of Ethereum DeFi, you can now try holding and investing in XRP. There are a ton of chances for XRP holders to investigate now that they have access to the Ethereum ecosystem. No matter to which group you belong, be careful to use an auditable, trusted-wrapped token.