A wrapped token represents an asset from one network or format on another network or protocol.
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Short definition
Wrapped Token is a wrapped token represents an asset from one network or format on another network or protocol.
Simple explanation
Wrapped tokens are often used so assets can move or be represented across different ecosystems.
Why it matters
Users need to understand wrapped assets because they may depend on bridges, custodians, or smart contracts.
Example context
A wrapped version of BTC may exist on Ethereum so it can be used in DeFi applications.