20 ERC-20 Tokens To Be Wrapped As FA2 Tokens (Including The Wrap Token)
In the Wrap Protocol Whitepaper it was stated that the following assets would be available as whitelisted to be wrapped in Quarter 1:
- AAVE
- BUSD (Binance USD)
- CEL (Celcius)
- COMP (Compound)
- CRO (Crypto.com)
- FTT (FTX Token)
- HT (Huobi Token)
- HUSD (Huobi USD)
- LEO (UNUS SED LEO – iFinex Ecosystem)
- LINK (Chainlink)
- MKR (Maker)
- OKB (Okex)
- PAX (Paxos)
- SUSHI (Sushiswap)
- UNI (Uniswap)
- USDC (USD Coin)
- USDT (Tether)
- WBTC (Wrapped BTC)
- WETH (Wrapped ETH)
These coins represent some of the largest trading coins on the biggest Ethereum exchange Uniswap. In addition, the Wrap Protocols very own WRAP token will also be wrapped as an FA2 token. As the tokens mentioned above will be whitelisted users will be able to create markets.
The Wrap Token
As part of the Wrap Protocol a Wrap token will also be created where:
…the governance and the economic profit generated by the protocol are distributed to $WRAP token holders. $WRAPs are distributed weekly to users of Wrap Protocol, with the idea of distributing its ownership to members of the Wrap community.
The token has both on-chain and off-chain governance mechanisms that have benefits and a DAO will be created which has rights over things such as fees and supply on the Wrap Protocol.
On-chain governance mechanisms can be used to vote on things such as fee levels and off-chain governance mechanisms (using tools such as BaseDAO) can be used to vote on things such as the introduction of new tokens to be wrapped.
The Wrap Token Economics
The Wrap token is an ERC-20 token that is wrapped 100% into a Tezos FA2 token to enable trades on both blockchains.
The Wrap token will start with a supply of 100 million tokens, but this can be changed via the DAO governance processes. With the current set of parameters laid out at launch, the full distribution is likely to take around 7 years, however this can be changed.
The recipients of the Wrap token fall into 3 distinct groups: Quorum Members, Users of the protocol and the Dev Pool.
The distribution ratios to these groups are as follows: Quorum Members (50%), Users Of The Protocol (40%) and the Dev Pool (10%). This distribution can also be amended by the DAO later down the line.
The Signers Quorum will initially be comprised of 5 members of the Tezos community, including Bender Labs. All wrapping and unwrapping transactions will be governed by a 3-of-5 governance.
Wrapping and unwrapping fees will both be set at 0.15% and will be paid by users in wTokens. Fees will be shared by Signers, $WRAP holders and the Dev Pool as follows:
– Signers: 0.04%
– $WRAP holders: 0.10%
– Dev Pool: 0.01%
The Signers Quorum undertake an important job on the protocol described here:
Wrap relies on an off-chain federation, that we called the Signers Quorum, which makes sure that at any given time the amount of wrapped tokens (that we’ll call wTokens) issued on the Tezos blockchain corresponds to the amount of original tokens locked on Ethereum.
For more information on the Wrap Protocol, it is advised to read the whitepaper here.