Wrapped BNB

Purpose and Utility

Wrapped BNB (WBNB) is an ERC-20 token representation of BNB that enables BNB to be used within the BNB Chain's DeFi ecosystem. It maintains a 1:1 peg with BNB through a wrapping mechanism where BNB is locked in a smart contract when WBNB is minted.

Business Model

The primary function of WBNB is to facilitate interoperability between BNB and BEP-20 tokens on the BNB Chain. When users want to interact with DeFi protocols on BNB Chain, they need to convert their BNB to WBNB first. This wrapping mechanism is transparent and verifiable on-chain.

Real-World Adoption

WBNB has significant adoption within the BNB Chain ecosystem, being one of the most widely used tokens for liquidity provision and trading. It serves as a crucial infrastructure component for the BNB Chain's DeFi ecosystem.

Platform Development

The WBNB contract is stable and well-audited. While it doesn't require ongoing development, it continues to serve its core function effectively as part of the BNB Chain infrastructure.

Token Distribution and Vesting

WBNB is created only when BNB is deposited into the wrapping smart contract, making it impossible for founders to pre-mine or allocate tokens to themselves. The supply is entirely determined by user demand for wrapped tokens.