{"id":8181,"date":"2022-09-27T08:43:02","date_gmt":"2022-09-27T08:43:02","guid":{"rendered":"https:\/\/mdr.foobrdigital.com\/?p=8181"},"modified":"2022-09-27T08:43:02","modified_gmt":"2022-09-27T08:43:02","slug":"disadvantages-of-token-wrapping","status":"publish","type":"post","link":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/2022\/09\/27\/disadvantages-of-token-wrapping\/","title":{"rendered":"Disadvantages of token wrapping?"},"content":{"rendered":"\n<p>If we go back to Coinmarketcap and compare the prices for native BTC and wBTC you\u2019ll find that the peg between them isn\u2019t exactly 1:1, this is because the minting and burning process isn\u2019t 100% efficient. That price difference is known as slippage which means that you will potentially lose value as you wrap and unwrap tokens.<\/p>\n\n\n\n<p>The whole process of wrapping and unwrapping also incurs fees which makes using wrapped tokens more expensive than transacting natively. You\u2019ll have to justify the cost in terms of the additional value you can realise in terms of yield that for example, wBTC can generate as opposed to using the unwrapped version within the Bitcoin ecosystem.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>If we go back to Coinmarketcap and compare the prices for native BTC and wBTC you\u2019ll find that the peg between them isn\u2019t exactly 1:1, this is because the minting and burning process isn\u2019t 100% efficient. That price difference is known as slippage which means that you will potentially lose value as you wrap and [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[563],"tags":[],"_links":{"self":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts\/8181"}],"collection":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/comments?post=8181"}],"version-history":[{"count":0,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts\/8181\/revisions"}],"wp:attachment":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/media?parent=8181"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/categories?post=8181"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/tags?post=8181"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}