“Wrap” converts FRAG assets into Wrapped FRAG (wFRAG), enabling users to participate in external DeFi ecosystems while preserving reward tracking within the FRAG-22 framework.

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Why Wrap?

Wrapping FRAG tokens into wFRAG allows:
  • External Integration: Enables FRAG assets to seamlessly integrate into external DeFi protocols.
  • Enhanced Liquidity: Improves asset liquidity and flexibility across DeFi ecosystems.
  • Reward Tracking: Preserves reward accumulation accurately FRAG-22 while assets are externally deployed.

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Detailed Wrap Procedure

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Step-by-Step Process

  1. User Initiates Wrapping Users initiate the wrapping process by depositing FRAG tokens into the FRAG-22 Reserve Account.
  2. Reserve Account Validation The Reserve Account validates the deposited assets, verifying authenticity and asset balance sufficiency.
  3. wFRAG Token Minting Upon successful validation, the Reserve Account triggers minting of an equivalent amount of wrapped FRAG tokens (wFRAG).
  4. Distribution of wFRAG Minted wFRAG tokens are directly issued to the user’s wallet.
  5. External Deployment Users utilize wrapped FRAG tokens into external DeFi protocol vaults, enabling yield generation and liquidity provision and more.

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Technical Components

ComponentRoleDescription
Reserve AccountAsset Custody & ValidationReceives FRAG tokens, validates deposits.
Wrapped Token Mint (wFRAG)Token GenerationMints wFRAG tokens proportional to the FRAG deposited.
User’s WalletwFRAG HoldingHolds wrapped tokens ready for external deployment.
External DeFi ProtocolYield Generation & Liquidity ProvisionAccepts wFRAG tokens, providing yield and liquidity.

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Wrap Operation Benefits

  • Cross-Protocol Utilization: Empowers users to leverage FRAG tokens in various DeFi environments.
  • Yield Generation: Facilitates earning additional yield via external DeFi protocols.
  • Secure Tracking: Ensures continuous and secure tracking of asset contributions and reward accumulation.