Game Theory
This is a detailed description of wrapping assets onto the ETH blockchain for liquidity and yield farming and unlocking value in the BTCZ asset. Essentially, what you are doing is driving the largest online userbase consisting of ages 14-55 involved in cryptocurrency and DeFi platforms and environments to direct exposure to the BTCZ name and environment. To put it dumbly, this is the new way to gain exposure to the human eye while at the same time providing your existing base with an astronomical boost to their existing value. Below I have written a complete as best I can description of wrapping and wrapped token assets.
Description of wrapped token
A wrapped token is an asset hosted on the Ethereum blockchain with a price that is the same as another underlying asset, even if it’s not on the same blockchain or on a blockchain at all.
A wrapped token is an ERC-20 compatible token with a value identical to another asset that it represents, either through a smart contract or by being backed one-to-one with the underlying asset.
Wrapped Bitcoin, for instance, is a token worth the same as one BTC at any given moment, as a smart contract algorithm reproduces its price in real time and regulates the underlying fund with supply and demand information gleaned from user transactions. In exchange for their money, wrapped token users get an equivalent amount of value “wrapped up” in an asset that’s more easily mobilized by decentralized applications (DApps).
Wrapped Ether, is a token worth the same as one ETH.
Types of wrapped tokens
Because Ethereum is the biggest DeFi ecosystem, wrapped tokens are often those hosted on other blockchains but are also stablecoins that are pegged to the dollar.
Many of the first wrapped assets were, in fact, fiat-backed stablecoins, such as tokens with prices pegged to the dollar — Tether, Coinbase’s USDC or TrueUSD. There are also euro, yen, yuan and countless other fiat stablecoins that are mostly based on the Ethereum blockchain.
The Wrapped Zcash token (coming), a privacy coin, will provide Ethereum DApp users with the coin’s anonymity advantages, plus a reliable way to invest in Zcash, thereby boosting its market.
Wrapped Zcash is a way for Zcash to be used within financial applications built on Ethereum — it opens a bridge from one ecosystem to the other. This two-way street benefits both Zcash and Ethereum users, as Zcash users are able to transact and invest within the many decentralized financial applications built on ETH.
This integration also brings an effect on the supply and demand for Zcash, which could prove a significant tailwind. For Ethereum users, the privacy benefits of Zcash enabled by its z-addresses and t-addresses provide new ways for decentralized finance (DeFi) applications to limit the publication of identifying information held in transaction data while still passing auditory and compliance standards.
These are backed accordingly via the reserves, with coins fed in according to the demand of online crypto exchanges and larger institutional investors who want to quickly exchange fiat money into crypto and manage their money within a given platform. This makes it as easy to deposit dollars into DeFi applications and blockchain wallets as it does to have a reliable counter currency providing traders relief from crypto asset volatility.
Blockchain interoperability
Other cryptocurrencies are beginning to launch wrapped versions of their tokens on Ethereum in larger numbers, with interoperability (The ability to share information across different blockchain networks, without restrictions) a vital consideration for solutions that want to be taken seriously.
Currently, one blockchain has no knowledge of information that might exist in a different blockchain. For instance, the Bitcoin (BTC) blockchain exists fully independently of the Ethereum (ETH) blockchain — in the sense that it has no knowledge of any information recorded there — and vice versa. Blockchain-based projects are isolated from each other, despite existing within the same industry and working with the same technology.
The crypto industry involves “a series of unconnected systems operating alongside, but walled from each other”. Blockchain interoperability is the ability to exchange data between different blockchains seamlessly, as if there were no boundaries.
Why Use Wrapped Tokens?
Previously, for example, if you owned Bitcoin, there was no way to use it on other blockchains. But what if you wanted to earn a higher yield on your Bitcoin through yield farming or other DeFi innovations? That’s where tokenized Bitcoins come in. The most popular use case for tokenized Bitcoin is to “wrap” them into Wrapped Bitcoin (WBTC). This extends Bitcoin’s utility, giving it more functionality depending on which blockchain the token is running on.
The popularity of wrapped tokens have helped power the DeFi ecosystem. On Ethereum, the total market value for wrapped BTC tokens alone exceeds $1.8 billion. In fact, over 0.6% of all minted Bitcoin are wrapped, a number that is steadily increasing.
Cost Effective
And now for the string in the lining. There is a GAS fee on the ETH network to accomplish this. The task of wrapping a token pegged to 1:1 already exists in the sense of stable coins. This can be done easily with Solidity and the ETH VM. Below is the current and if the market keeps it up GAS fee to construct and deploy and fuel 1:1 Airdrop self minting along side the original asset from A to Z start and completion. As the old saying goes from my grandpa, “Got to crack a few eggs to make an omelet.”
LABOR: 2,500,000 BTCZ - payment in full upon completion
GAS COST: 36 ETH (needs to be paid to the Eth Deployment Address to Deploy) - I myself (Complex) am willing to put up 75% (24 ETH) of the total GAS cost to deploy this so we are apparently 36-24 down to 12 ETH.
DeFi for Dummies: decrypt(DOT)co/resources/defi-ultimate-beginners-guide-decentralized-finance
- YES
- NO
0 voters
- BTCZ cost from VAULTZ, GAS from VAULTZ
- BTCZ cost from VAULTZ, GAS voluntary donations
- BTCZ cost voluntary donations, GAS voluntary donations
0 voters
