– Wrapped tokens are blockchain assets that represent other assets from different blockchains. They are designed to facilitate interoperability within specific ecosystems.
– These tokens are created by locking the original asset on one blockchain and issuing a corresponding token on another blockchain. This allows users to access and utilize assets from different blockchains without the need for complex cross-chain transactions.
– Wrapped tokens enable seamless integration between different blockchain networks, promoting liquidity and expanding the functionality of decentralized applications (dApps) and decentralized finance (DeFi) platforms.
In summary, wrapped tokens play a crucial role in enabling interoperability between different blockchains. By representing assets from various networks, they enhance liquidity and expand the possibilities for decentralized applications and decentralized finance platforms.