Wrapped AVAX WAVAX

Wrapped AVAX, or wAVAX, is a representation of AVAX (the native token of the Avalanche platform) on another blockchain. It is created by wrapping AVAX tokens and making them compatible with a different blockchain, typically Ethereum. This allows users to utilize AVAX on other blockchain networks that support wrapped tokens. The process involves depositing AVAX into a smart contract, which then mints an equivalent amount of wAVAX. This wrapped version of AVAX can then be used in decentralized applications (dApps), decentralized exchanges (DEXs), and other DeFi protocols on the target blockchain.

Wrapped AVAX (WAVAX) is unique compared to other cryptocurrencies because it represents a tokenized version of AVAX on the Ethereum network. This allows AVAX holders to interact with decentralized applications (dApps) and the broader Ethereum ecosystem. WAVAX is created by locking up AVAX on the Avalanche platform, which then issues an equal amount of ERC-20 WAVAX tokens that can be used on Ethereum. WAVAX can be traded, transferred, and used for various purposes within the Ethereum network, providing greater liquidity and interoperability for AVAX holders.