Wrapped token
wrapped
A token that represents another asset on a different chain or in a different standard, redeemable 1:1.
WBTC (Bitcoin on Ethereum), wstETH (non-rebasing stETH), bridged USDC / USDT. Wrapping introduces an additional smart-contract or custodial layer; the wrapped token's risk profile is the underlying + the wrapper.
Related terms
- BridgeA protocol that lets assets move between chains, usually by lock-and-mint, burn-and-mint, or liquidity-network designs.
- Canonical bridgeAn issuer- or chain-operated bridge that produces the version of an asset the issuer treats as its native off-chain representation.
- wstETHA non-rebasing wrapper of Lido stETH — share-price grows with staking yield.