Wrapped BCH or WBCH is a token that is equivalent to Bitcoin Cash (BCH) on the smartBCH chain. WBCH has become increasingly popular in the decentralized finance (DeFi) space because it allows for the seamless transfer of BCH on the smartBCH blockchain, while also enabling it to be used in a variety of other applications.
Wrapped BCH (WBCH) is a token that represents Bitcoin Cash (BCH) on the smartBCH chain. Essentially, WBCH is a tokenized version of BCH that is pegged to the value of BCH at a 1:1 ratio. This means that for every WBCH token, there is an equivalent amount of BCH that is held in reserve.
The creation of WBCH was a response to the limitations of BCH itself, which is not well compatible with SEP-20 tokens. As such, WBCH was designed to enable the use of BCH in DeFi applications, which are built on top of the smartBCH blockchain and rely heavily on SEP-20 tokens.
The main benefit of WBCH is that it enables BCH to be used in DeFi applications without having to sacrifice its native properties. BCH can be wrapped into WBCH and then used in a variety of applications, including lending and borrowing, decentralized exchanges, decentralized games, and other DeFi protocols. Additionally, WBCH can be traded on a number of decentralized exchanges, making BCH more accessible and liquid.
To wrap BCH into WBCH, a user sends their BCH to a smart contract that mints an equivalent amount of WBCH. This WBCH can then be used in a variety of DeFi applications or traded on decentralized exchanges. To unwrap WBCH and convert it back into BCH, a user simply sends their WBCH to the smart contract, which burns the WBCH and releases the equivalent amount of BCH back to the user.
The process of wrapping and unwrapping BCH can be done easily through the BenSwap DEX interface. Most of the DeFi protocols on smartBCH also have built-in support for WBCH.
Wrapped BCH: 0x3743eC0673453E5009310C727Ba4eaF7b3a1cc04