A Wrapped Token (WT) is a crypto token that represents and mimics the value of another token.

Typically a token is locked within a smart contract of a certain chain and a wrapped token is created using another smart contract on a different blockchain network.

Wrapped tokens are an important part of the DeFi ecosystem, as they provide a way for users to access and trade DeFi assets that are not native to a particular blockchain network. By wrapping a token in a smart contract on a different blockchain network, users can create a new, interoperable version of the token that can be easily traded and used within the DeFi ecosystem.

Wrapped tokens are often used in conjunction with decentralized exchanges (DEXs), which allow users to trade wrapped tokens and other DeFi assets in a decentralized and secure manner. This can provide users with greater flexibility and choice when it comes to trading and using DeFi assets, and it can help to promote the growth and development of the DeFi ecosystem as a whole.

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