Wrapped EGLD
Crypto Overview
Purpose and Utility
Wrapped EGLD (WEGLD) is a wrapped version of the native MultiversX (formerly Elrond) blockchain token EGLD. Its primary purpose is to enable EGLD holders to interact with decentralized applications (dApps) on the MultiversX network while maintaining the underlying value of EGLD. Each WEGLD token is backed 1:1 by EGLD held in smart contracts.
Business Model and Operations
The token operates through a transparent wrapping mechanism where users deposit EGLD and receive an equivalent amount of WEGLD. This process is reversible, allowing users to unwrap their WEGLD back to EGLD at any time. The system is fully automated through smart contracts, ensuring transparency and eliminating human intervention in the wrapping/unwrapping process.
Real-World Adoption
WEGLD is actively used within the MultiversX ecosystem, particularly in DeFi applications and NFT marketplaces. It serves as a critical component for smart contract interactions and decentralized trading on the MultiversX network.
Platform Development
The MultiversX team maintains regular updates to the wrapping mechanism and associated smart contracts. The platform shows consistent development activity and security improvements.
Token Distribution
WEGLD's supply is directly correlated to the amount of EGLD locked in the smart contract. There is no pre-mine or founder allocation since tokens are only created when users deposit EGLD.
Crypto Impact
To assign a comfort level investing in Wrapped EGLD 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 EGLD.
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.