Wrapped USDR

Overview

Wrapped USDR (WUSDR) is the wrapped version of USDR, a stablecoin project that aims to provide a Shariah-compliant digital currency. WUSDR exists on the Ethereum blockchain as an ERC-20 token, making the original USDR compatible with Ethereum's DeFi ecosystem.

Purpose and Utility

The primary purpose of WUSDR is to serve as a bridge between the USDR ecosystem and Ethereum-based applications while maintaining Shariah compliance. It allows holders to access Ethereum-based services while holding what is essentially USDR.

Business Model

The business model involves a 1:1 backing of WUSDR with USDR, similar to how WETH is backed by ETH. When users want to use their USDR on Ethereum, they can wrap it into WUSDR through a smart contract. This process is reversible, allowing users to unwrap their WUSDR back to USDR when needed.

Real-World Adoption

The adoption of WUSDR is currently limited, as it is a relatively new project. However, this does not affect its Shariah compliance status, as the underlying mechanism and purpose are legitimate.

Platform Development

The development activity primarily focuses on maintaining the wrapping/unwrapping mechanism and ensuring secure integration with the Ethereum network. The smart contracts have been audited to ensure security.