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.
Detailed Wrap Procedure
Step-by-Step Process
- User Initiates Wrapping Users initiate the wrapping process by depositing FRAG tokens into the FRAG-22 Reserve Account.
- Reserve Account Validation The Reserve Account validates the deposited assets, verifying authenticity and asset balance sufficiency.
- wFRAG Token Minting Upon successful validation, the Reserve Account triggers minting of an equivalent amount of wrapped FRAG tokens (wFRAG).
- Distribution of wFRAG Minted wFRAG tokens are directly issued to the user’s wallet.
- External Deployment Users utilize wrapped FRAG tokens into external DeFi protocol vaults, enabling yield generation and liquidity provision and more.
Technical Components
| Component | Role | Description |
|---|---|---|
| Reserve Account | Asset Custody & Validation | Receives FRAG tokens, validates deposits. |
| Wrapped Token Mint (wFRAG) | Token Generation | Mints wFRAG tokens proportional to the FRAG deposited. |
| User’s Wallet | wFRAG Holding | Holds wrapped tokens ready for external deployment. |
| External DeFi Protocol | Yield Generation & Liquidity Provision | Accepts wFRAG tokens, providing yield and liquidity. |
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.