Wrapped Asset

Wrapped Asset Pool refers to a collection of digital assets that have been tokenized to maintain value and facilitate interoperability across different blockchains, enhancing liquidity and trading efficiency.

A wrapped asset is a tokenized version of a real-world asset or another cryptocurrency, created to enhance its utility and interoperability on blockchain platforms. By wrapping an asset, it can operate on different blockchain ecosystems while maintaining a 1:1 backing with its underlying value.For example, Wrapped Bitcoin (WBTC) is an ERC-20 token that represents Bitcoin on the Ethereum network. WBTC allows Bitcoin holders to engage in Ethereum-based applications like decentralized finance (DeFi) without needing to sell their Bitcoin.The wrapping process involves a custodian who holds the original asset and issues the wrapped version. This mechanism enables users to access various blockchain features, such as smart contracts and decentralized exchanges, that may not support the original asset directly.Wrapped assets facilitate greater liquidity and broader market participation, making it easier for users to manage their investments and take advantage of opportunities across different blockchain networks.

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