What are Wrapped Tokens?

Wrapped tokens represent ownership of a corresponding asset on a different blockchain. The idea behind wrapped tokens is to allow the use of assets from one blockchain on a different blockchain. This is accomplished by creating a digital asset on the destination blockchain backed by an equivalent amount of the original asset on the source blockchain. For example, consider a wrapped WETH, which represents ownership of ETH (Ethereum) on the Ethereum blockchain. The value of WETH is equivalent to the…