Wrapped BNB
Crypto Overview
Overview
Wrapped BNB (WBNB) is an BEP-20 token that represents BNB coin on the BNB Smart Chain (formerly BSC). Each WBNB is backed 1:1 by BNB, allowing users to use their BNB holdings within the BNB Smart Chain ecosystem.
Intended Utility
The primary purpose of WBNB is to enable BNB to be used within the BNB Smart Chain ecosystem for DeFi applications, smart contracts, and other blockchain-based services. This wrapping mechanism is necessary because native BNB cannot directly interact with BEP-20 smart contracts.
Actual Utility
WBNB is actively used across the BNB Smart Chain ecosystem for its intended purpose. It serves as collateral in various DeFi protocols, facilitates trading pairs on decentralized exchanges, and enables smart contract interactions. The token maintains significant daily trading volume and is widely integrated across major DeFi platforms on BSC.
Token Distribution and Governance
WBNB is created through a direct wrapping mechanism where users deposit BNB and receive WBNB in return. There is no pre-mine, no team allocation, and no venture capital investments. The supply is purely determined by user demand for wrapped tokens.
Technology Assessment
The wrapping mechanism is transparent and verifiable on-chain. Users can verify the 1:1 backing of WBNB with BNB through the smart contract. The technology is similar to other wrapped token implementations that have been successfully deployed across various blockchain networks.
Crypto Impact
To assign a comfort level investing in Wrapped BNB from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to Wrapped BNB.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.