Wrapped XDC WXDC Price

What is Wrapped XDC (WXDC)?

Wrapped XDC (WXDC) is an ERC-20 token that represents the XDC network's native cryptocurrency, XDC, on the Ethereum blockchain. It allows XDC holders to use their assets in various decentralized finance (DeFi) applications that are compatible with Ethereum. By wrapping XDC, users gain access to the liquidity and functionalities available in the Ethereum ecosystem while maintaining the value of their original XDC holdings.

Who are the Founders of Wrapped XDC?

Wrapped XDC was developed by the XDC Network team, which includes a group of blockchain enthusiasts and professionals. The XDC Network itself was co-founded by Dr. Aijaz A. N. Khan, Gaurav Dubey, and Gaurav Kumar. They aimed to create a hybrid blockchain solution that combines the benefits of both public and private blockchains, particularly for enterprise applications.

How does Wrapped XDC Work?

Wrapped XDC operates through a smart contract mechanism that locks the original XDC tokens and issues an equivalent amount of WXDC tokens on the Ethereum blockchain. The process can be broken down into the following steps:

• Locking XDC: When a user wants to wrap their XDC, they send their tokens to a smart contract that securely holds these tokens.
• Minting WXDC: The smart contract then mints an equivalent amount of WXDC tokens, which are ERC-20 compliant and can be used on the Ethereum network.
• Unwrapping: Users can redeem their WXDC for XDC at any time by sending WXDC back to the smart contract, which then releases the original XDC tokens.

This wrapping process ensures that the value of WXDC is always pegged to XDC, maintaining a 1:1 ratio while allowing XDC to be utilized in various DeFi projects and exchanges on the Ethereum network.

Top Use Cases of Wrapped XDC

Wrapped XDC has several practical applications within the cryptocurrency ecosystem, including:

• DeFi Participation: WXDC can be used in various DeFi protocols, allowing users to lend, borrow, or earn interest on their assets.
• Liquidity Provision: Users can provide liquidity in decentralized exchanges (DEXs) that support WXDC, earning transaction fees and rewards.
• Cross-Chain Transactions: WXDC facilitates interoperability between the XDC network and Ethereum, enabling users to transact across different blockchain ecosystems seamlessly.
• Staking and Yield Farming: WXDC holders can participate in staking pools or yield farms to earn additional rewards, enhancing their returns on investment.
• Integration with DApps: WXDC can be utilized in various decentralized applications (DApps) built on Ethereum, expanding its usability and acceptance.

How to Keep your Wrapped XDC Safe?

Keeping your Wrapped XDC secure involves several best practices:

• Use Reputable Wallets: Store your WXDC in well-known cryptocurrency wallets that support ERC-20 tokens, such as MetaMask or Ledger hardware wallets.
• Enable Two-Factor Authentication: For exchanges or wallets that offer it, enable two-factor authentication (2FA) to add an extra layer of security.
• Be Wary of Phishing Scams: Always double-check URLs and be cautious of unsolicited messages asking for your private keys or sensitive information.
• Regularly Update Software: Keep your wallet software and any trading applications updated to protect against vulnerabilities.
• Manage Private Keys: Safeguard your private keys and recovery phrases, as losing them can result in losing access to your WXDC.