What is Wrapped asset?

A token that represents an asset from another chain, held by a custodian or a bridge contract.

Wrapped tokens let an asset from one chain be used on another — wrapped BTC on Ethereum, for example. The wrapper is a claim on the original, held somewhere.

That 'somewhere' is the risk. A wrapped asset is only as good as the custodian or bridge behind it, and pegs have broken when that layer failed.

BridgeSecurity
A service that moves assets between chains, and one of the most exploited pieces of infrastructure.
PegBasics
The target price a stablecoin or wrapped asset is meant to hold, usually $1.
Smart-contract riskDeFi
The chance that a contract's code or admin keys take your funds, regardless of price.

See it on a coin page

Bitcoin prediction Ethereum prediction How the model works

Related terms

See it on a coin page