DYOR Crypto Wiki
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After great community collaboration DYOR has rebranded into CryptoWiki.me 🥳 a moment to celebrate!

From now on all new information will be added within the CryptoWiki.mecommunity website! No longer over here. So be sure to move over to stay on top of new research developments!

Same content - better & cleaner experience 🤝

DYOR started out in 2015 on Fandom and has now grown to ~3500 pages on CryptoWiki.me 🤩

All the information that you can find in these pages is public knowledge with sources provided. The community is encouraged to add truthful and unbiased entries to further this body of work.

Follow @cryptowiki_me on Twitter to be up to date on pages being created or edited.

Basics

Well known examples

  • The most used wrapped tokens are wrapped versions of Bitcoin, and notably wrapped tokens of BTC on Ethereum. In total over 250,000 BTC live on Ethereum, over 1% of every BTC that will ever exist (29-6-2021), which is multitudes more than have been locked within LN (1500BTC).

Pros and Cons

Pros

  • Wrapping a native coin can give the benefits of it becoming an ERC20 on Ethereum, or another token standard on a different blockchain. Becoming an ERC20 means that the token can be used in all kinds of smart contracts used in DeFi. These often come with yield opportunities which attract people more than simple HODLing their coin on their native blockchain.

Cons

  • The positives of having different functionalities when you wrap a token, also come with a downside. You might gain functionality in usage, but you will loose the security of the original native blockchain. Your wrapped BTC is not actual BTC, but an ERC20 IUO for a BTC. This comes with new layers of trust and security risks.
  • Some of the wrapped token projects (WBTC for example) are custodial, taking away the trustless nature of BTC.
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