{"id":"wrapped-avax-wavax","title":"Wrapped AVAX (WAVAX)","content":"**Wrapped AVAX (WAVAX)** is a tokenized representation of the native [AVAX](https://iq.wiki/wiki/avalanche-avax) [cryptocurrency](https://iq.wiki/wiki/cryptocurrency), designed to facilitate its use across various [blockchain](https://iq.wiki/wiki/blockchain) networks beyond the [Avalanche](https://iq.wiki/wiki/avalanche) ecosystem. It maintains a 1:1 peg with [AVAX](https://iq.wiki/wiki/avalanche-avax), meaning one WAVAX token is equivalent in value to one [AVAX](https://iq.wiki/wiki/avalanche-avax) token. [\\[1\\]](#cite-id-WZvgiS6v7M) [\\[2\\]](#cite-id-qCN4UVyNkZ)\n\n## Overview\n\nWrapped AVAX (WAVAX) serves as an essential bridge for the [Avalanche](https://iq.wiki/wiki/avalanche) [blockchain's](https://iq.wiki/wiki/blockchain) native token, [AVAX](https://iq.wiki/wiki/avalanche-avax), enabling its seamless integration into the broader [decentralized finance (DeFi)](https://iq.wiki/wiki/defi) landscape. The primary purpose of WAVAX is to provide an [ERC-20](https://iq.wiki/wiki/erc-20) compatible version of [AVAX](https://iq.wiki/wiki/avalanche-avax) on [Avalanche](https://iq.wiki/wiki/avalanche)'s C-Chain, which is the [smart contract](https://iq.wiki/wiki/smart-contract) chain of the [Avalanche](https://iq.wiki/wiki/avalanche) network. This compatibility is crucial because many [DeFi](https://iq.wiki/wiki/defi) applications and platforms are built upon or primarily interact with the [ERC-20](https://iq.wiki/wiki/erc-20) standard, which originated on the [Ethereum](https://iq.wiki/wiki/ethereum) [blockchain](https://iq.wiki/wiki/blockchain). By converting [AVAX](https://iq.wiki/wiki/avalanche-avax) into WAVAX, the token gains increased interoperability, allowing it to be utilized in a wider range of [decentralized applications](https://iq.wiki/wiki/decentralized-application), [liquidity pools](https://iq.wiki/wiki/liquidity-pool), and trading platforms that might not natively support the [AVAX](https://iq.wiki/wiki/avalanche-avax) token directly. The process of creating WAVAX involves \"wrapping\" [AVAX](https://iq.wiki/wiki/avalanche-avax) tokens, which can subsequently be \"unwrapped\" or redeemed for the original [AVAX](https://iq.wiki/wiki/avalanche-avax) tokens at any time, maintaining the 1:1 value ratio [\\[1\\]](#cite-id-WZvgiS6v7M).\n\n## Technology\n\nWAVAX operates on a fundamental principle of token wrapping, where a native [cryptocurrency](https://iq.wiki/wiki/cryptocurrency) is locked on its original [blockchain](https://iq.wiki/wiki/blockchain) and an equivalent token is [minted](https://iq.wiki/wiki/minting) on another [blockchain](https://iq.wiki/wiki/blockchain). For WAVAX, this means that each WAVAX token is backed by an equal amount of [AVAX](https://iq.wiki/wiki/avalanche-avax), which is held in reserve. This 1:1 ratio ensures that the value of WAVAX remains directly tied to that of [AVAX](https://iq.wiki/wiki/avalanche-avax), providing stability and trust in its representation. The technical foundation of WAVAX is its adherence to the [ERC-20](https://iq.wiki/wiki/erc-20) token standard. Its widespread adoption means that any wallet, exchange, or [dApp](https://iq.wiki/wiki/decentralized-application) that supports [ERC-20](https://iq.wiki/wiki/erc-20) tokens can also support WAVAX. This compatibility allows WAVAX to be easily integrated into various [DeFi](https://iq.wiki/wiki/defi) protocols, including [decentralized exchanges (DEXs)](https://iq.wiki/wiki/decentralized-exchange), lending platforms, and yield farming applications, without requiring specific adaptations for the native [AVAX](https://iq.wiki/wiki/avalanche-avax) token. The wrapping process typically involves a [smart contract](https://iq.wiki/wiki/smart-contract) that facilitates the locking of [AVAX](https://iq.wiki/wiki/avalanche-avax) and the [minting](https://iq.wiki/wiki/minting) of WAVAX, and vice versa for unwrapping, ensuring a secure and automated conversion mechanism [\\[1\\]](#cite-id-WZvgiS6v7M).\n\n## Use Cases\n\n* **Lending and Borrowing**: Users can deposit WAVAX into [DeFi](https://iq.wiki/wiki/defi) lending protocols to earn interest or use it as collateral to borrow other assets. This opens up opportunities for capital efficiency and leveraging assets within the [DeFi](https://iq.wiki/wiki/defi) space.\n* **Liquidity Provision**: WAVAX can be paired with other tokens in [liquidity pools](https://iq.wiki/wiki/liquidity-pool) on [DEXs](https://iq.wiki/wiki/decentralized-exchange), enabling users to earn fees from trades and contribute to the overall liquidity of the decentralized market.\n* **Yield Farming**: Participation in various yield farming strategies becomes possible with WAVAX, where users can stake or lock their tokens in [smart contracts](https://iq.wiki/wiki/smart-contract) to earn additional [cryptocurrency](https://iq.wiki/wiki/cryptocurrency) rewards.\n* **Interoperability**: WAVAX facilitates the movement and utilization of [AVAX's](https://iq.wiki/wiki/avalanche-avax) value across different [blockchain](https://iq.wiki/wiki/blockchain) ecosystems that are compatible with [ERC-20](https://iq.wiki/wiki/erc-20), thereby enhancing the overall interoperability of the [Avalanche](https://iq.wiki/wiki/avalanche) network with other major [blockchain](https://iq.wiki/wiki/blockchain) platforms [\\[1\\]](#cite-id-WZvgiS6v7M).","summary":"Wrapped AVAX (WAVAX) is a tokenized version of AVAX, operating on a 1:1 ratio to enable its use across other blockchain networks; an ERC-20 compatible token and enhances AVAX's functionality and interoperability within DeFi applications.","images":[{"id":"QmVfsP9UMeu7BMN9JnCFi3nAxUeAEGrWGpVR7LzeKvdSzY","type":"image/jpeg, image/png"}],"categories":[{"id":"cryptocurrencies","title":"cryptocurrencies"}],"tags":[{"id":"Ethereum"}],"media":[],"metadata":[{"id":"references","value":"[{\"id\":\"WZvgiS6v7M\",\"url\":\"https://www.thebigwhale.io/tokens/wavax\",\"description\":\"What is Wrapped AVAX?\",\"timestamp\":1752695023945},{\"id\":\"qCN4UVyNkZ\",\"description\":\"AVAX Support: What is WAVAX or wrapped AVAX?\",\"timestamp\":1752695574839,\"url\":\"https://support.avax.network/en/articles/5071617-what-is-wavax-or-wrapped-avax\"}]"},{"id":"coingecko_profile","value":"https://www.coingecko.com/en/coins/wrapped-avax"},{"id":"coinmarketcap_url","value":"https://coinmarketcap.com/currencies/wavax/"},{"id":"website","value":"https://www.avax.network/"},{"id":"twitter_profile","value":"https://x.com/avax"},{"id":"reddit_profile","value":"https://www.reddit.com/r/Avax/"},{"id":"telegram_profile","value":"https://t.me/avalancheavax"},{"id":"discord_profile","value":"https://discord.com/invite/RwXY7P6"},{"id":"previous_cid","value":"\"https://ipfs.everipedia.org/ipfs/QmaRZt1xYH4R8zjuop5V2rYh1J4682LYYcBcAnQ3nnUxa4\""},{"id":"commit-message","value":"\"Updated WAVAX launch date structure: new ID, added fields, and 'CREATE' action.\""},{"id":"previous_cid","value":"QmaRZt1xYH4R8zjuop5V2rYh1J4682LYYcBcAnQ3nnUxa4"}],"events":[{"id":"3ab7d9b4-bd42-4195-9f1d-1719ddb94954","date":"2021-04","title":"Launch Date","type":"CREATED","description":"WAVAX Goes Live","link":"","multiDateStart":null,"multiDateEnd":null}],"user":{"id":"0x8af7a19a26d8fbc48defb35aefb15ec8c407f889"},"author":{"id":"0x8af7a19a26d8fbc48defb35aefb15ec8c407f889"},"language":"en","version":1,"linkedWikis":{"blockchains":["avalanche","ethereum"],"founders":["emin-gun-sirer","kevin-sekniqi","maofan-ted-yin"],"speakers":[]}}