Wrapped BNB - a cryptocurrency, whose value is pegged to the value of another cryptocurrency. The original asset is placed in a kind of digital vault that allows you to create wrapped tokens on another blockchain.
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What is Wrapped BNB?
Wrаpped-token — a tokenized version of a third-party cryptocurrency. It is pegged to the value of the underlying asset and, in most cases, can be redeemed at any time. In other words, a wrapped token is an asset that has been moved from one blockchain to another.
However, there is no perfect way to transfer information from one blockchain to another, since each of them is a separate system. Wrapped, which provide compatibility between different blockchains, in fact, can contribute to the formation of a cross-chain.
It is worth noting that you do not need to worry about the process of moving assets to a third-party blockchain. Trading platform tokens is carried out in the same way as trading any other cryptocurrency. For example, using the WBTC/BTC market on Binance.
Platform features
Although many blockchains have their own standards (ERC-20 for Ethereum or BEP-20 for BSC), they cannot be applied across multiple chains. Wrapped tokens allow non-native tokens to be used on a specific blockchain.
The benefits of these tokens are as follows:
| 1 | They help to improve liquidity and capital efficiency for both centralized and decentralized exchanges. |
| 2 | The ability to use idle assets on a different blockchain can forge links between networks and increase liquidity. |
And finally, the use of wrapped tokens reduces the time, spent on transactions, and reduces the amount of commissions. Although bitcoin has incredible properties, it is not the fastest and most cost-effective currency. However, its advantages far outweigh the disadvantages, especially since many of the difficulties can be solved by using a wrapped version of bitcoin, moved to a blockchain that can provide fast transactions and low fees.
Project token
You can convert your crypto assets (BTC, ETH, XRP, USDT, BCH, DOT and many more) using Binance Bridge to use them on Binance Smart Chain in the form of BEP-20 tokens. By moving assets to BSC, you can trade them or use them to work with various yield farming applications. The best cryptocurrency exchanges to trade Wrapped BNB shares currently are:
- Uniswap (V3);
- PancakeSwap (V2);
- Biswap;
- QuickSwap;
- ApeSwap (BSC).
Moving assets between blockchains is paid for with gas. However, it is worth noting that BSC requires much lower gas costs, compared to other blockchains.