- Bender Labs is launching its first bridge protocol, WRAP.
- WRAP will move tokens from Ethereum to Tezos using wTokens.
- wTokens will represent ERC-20, ERC-721, and FA2 tokens pegged at their value.
Benders Labs launched WRAP Protocol to bridge Ethereum and Tezos networks. The launch marks a key milestone towards creating an interoperable open financial system.
Notably, WRAP is the first bridge protocol from Bender Labs. Also, the protocol will serve as a decentralized bridge for transferring ERC-20 and ERC-721 tokens from Ethereum to Tezos as FA2 tokens.
In fact, the WRAP bridge will add much-needed relief to the often congested Ethereum network. Currently, Ethereum supports the majority of Decentralized Finance (DeFi) applications thanks to its position as the DApp and smart contracts pioneer.
However, the scaling limitations, congestion, and high gas fees on Ethereum have hindered the efficient growth of DeFi. In response to these challenges, WRAP will provide Ethereum users access to a faster and cheaper alternative.
To use WRAP, users can convert their ERC-20 or ERC-721 token into wrapped tokens (wToken) at a rate of 1:1. The bridge moves the wToken to Tezos and converts the tokens into FA2. The transfer process is seamless, secure, and fast and is driven by the WRAP token $WRAP.
Also, WRAP is an important step for Bender Labs towards its goal to build the next generation of open financial markets. In fact, Bender Labs CEO, Hugo Renaudin noted that Bender believes that “financial markets should be open, transparent, unstoppable, and rely on lines of codes rather than intermediaries”.
Additionally, by bridging the gap between Ethereum and Tezos WRAP will not only drive cross-chain interoperability. Hopefully, WRAP will also help reduce the gap between DeFi and traditional financial markets.