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multiversx

MultiversX Wrapped EGLD Token

What is the meaning of Wrapped EGLD Token?

xExchange gives a popup with this message Reclaim your EGLD and the value is equivalent with the Wrapped EGLD Token value and I don't know what that is.

Solution

  • There are 2 types of tokens on the MultiversX blockchain:

    • EGLD (the "coin")
    • ESDT, similar to ERC20 (like MEX, WUSDC, wrapped EGLD, RIDE, AERO, SUPER, etc.)

    Because EGLD is not an ESDT token, if you want to:

    • swap EGLD -> MEX, you will actually make EGLD -> wrapped EGLD -> MEX
    • swap MEX -> EGLD, you will actually make MEX -> wrapped EGLD -> EGLD

    In xExchange you can see this information under the Swap button:

    You will be asked to sign 2 transactions

    and under Balances, you can see Tokens > Wrapped EGLD with an Unwrap button. That amount was gained because the prices were fluctuating. If you unwrap it, you'll get EGLD.

    More details:

    Wrapped Tokens

    ... we're going to use ESDT to implement wrapped tokens, but how is the wrapping actually done? For that, we have the EgldEsdtSwap, a very simple SC, whose only purpose is to exchange 1:1 native eGLD to WrappedEgld ESDT tokens. You can also do the reverse operation at any time, which is known as unwrapping.