Why Unwrap?
Unwrapping wFRAG tokens into original FRAG assets allows users to:- Retrieve Original Assets: Redeem underlying FRAG tokens at any point.
- Claim Rewards: Access accumulated rewards and settle any outstanding balances associated with their token holdings.
- Rebalance Holdings: Adjust their asset allocation according to changing market conditions or investment strategies.
Detailed Unwrap Procedure
Step-by-Step Process
- User Initiates Unwrapping Users request unwrapping by returning wrapped FRAG tokens (wFRAG) back to FRAG-22.
- Reserve Account Validation The Reserve Account confirms the wFRAG token authenticity and the user’s token balance.
- Burn wFRAG Tokens Once validated, the corresponding amount of wFRAG tokens is burned to maintain accurate total supply records.
- Release Underlying FRAG Assets The Reserve Account releases the equivalent original FRAG tokens to the user’s wallet.
- Update Reward Accounts Reward contributions and balances are recalculated and settled based on the final holdings after unwrapping.
Technical Components
| Component | Role | Description |
|---|---|---|
| Reserve Account | Asset Validation & Custody | Validates and accepts wFRAG for burning. |
| Wrapped Token Burn | Token Supply Management | Burns returned wFRAG tokens to reduce circulating supply. |
| Underlying Asset Release | FRAG Asset Transfer | Releases FRAG tokens back to the user’s account. |
| Reward Account Update | Reward Tracking & Settlement | Recalculates contributions and settles outstanding rewards. |
Unwrap Operation Benefits
- Asset Flexibility: Allows users immediate access to original FRAG assets when desired.
- Accurate Reward Management: Ensures precise calculation and settlement of rewards upon redemption.
- Maintains Asset Integrity: Keeps asset supply and circulation transparent and correctly balanced within the FRAG-22 ecosystem.