Bender Labs has introduced Wrap Protocol on both the Ethereum (ETH) and Tezos (XTZ) mainnet. As a decentralized link between Ethereum and Tezos, users can transfer Ethereum ERC721 and ERC20 tokens to the Tezos blockchain. Users enclose these tokens to FA2 tokens on Tezos. Moreover, it is pegged to the original tokens. The tokens are then compatible with maximum DeFi protocols on the Tezos blockchain, like Quipuswap, Atomex, or Kolibri.
Employing the bridge, users can produce 1:1 representations of Ethereum tokens on the Tezos blockchain. Moreover, wrapping enables value transfer within two blockchains with incompatible token formats. One well-known instance is WBTC (Wrapped Bitcoin), which represents Bitcoin on Ethereum. As per the Bender Labs, the Wrap Protocol transforms ERC-20 tokens into FA-2–Tezos’ unified multi-asset token standard. In this example, a user would lock their ERC-20 token into the Wrap Protocol’s contract and create an FA-2 token on Tezos with a 1:1 representation. Apart from developing a bridge within the two networks, users can also gain the native WRAP token for participating.
Bender Labs Launches $WRAP tokens
The launch of the Native $WRAP tokens took place with the launch as ERC20 tokens wrapped into an FA2 employing Wrap protocol. The first batch of $WRAPs will be issued a month after the launch of Wrap Protocol. As per the whitepaper, 40% of weekly $WRAP tokens will be assigned weekly to users. Later, signers will gain another 50%. Further, the dev pool will earn the last 10%. $WRAPs will be distributed weekly to consumers and signers depending on their activity one month earlier. Moreover, the weekly distributions of $WRAPs will accompany an exponentially decreasing curve, totaling 100 million coins.
As a DeFi protocol, Wrap depends on a solid federation of users and developers to guarantee its stability. Moreover, this strong federation will involve the Signer’s Quorum. They are a combination of organization functioning together to ensure the strength of the peg between wrapped tokens and their ERC20 counterparts. The founding signers are Bender Labs, Bake N Rolls, MadFish, Baking Bad, and Blockscale. The Quorum will work with a three of five governance.
Follow BitcoinWorld for the latest updates.