“Unwrap” converts Wrapped FRAG (wFRAG) tokens back into original FRAG assets. It ensures accurate redemption of underlying assets and appropriate reward management within FRAG-22.

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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.

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Detailed Unwrap Procedure

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Step-by-Step Process

  1. User Initiates Unwrapping Users request unwrapping by returning wrapped FRAG tokens (wFRAG) back to FRAG-22.
  2. Reserve Account Validation The Reserve Account confirms the wFRAG token authenticity and the user’s token balance.
  3. Burn wFRAG Tokens Once validated, the corresponding amount of wFRAG tokens is burned to maintain accurate total supply records.
  4. Release Underlying FRAG Assets The Reserve Account releases the equivalent original FRAG tokens to the user’s wallet.
  5. Update Reward Accounts Reward contributions and balances are recalculated and settled based on the final holdings after unwrapping.

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Technical Components

ComponentRoleDescription
Reserve AccountAsset Validation & CustodyValidates and accepts wFRAG for burning.
Wrapped Token BurnToken Supply ManagementBurns returned wFRAG tokens to reduce circulating supply.
Underlying Asset ReleaseFRAG Asset TransferReleases FRAG tokens back to the user’s account.
Reward Account UpdateReward Tracking & SettlementRecalculates contributions and settles outstanding rewards.

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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.