What is wrapped matic? Before diving into the question, we would first have to understand the concept of wrapped tokens.
Wrapped tokens
Simply put, a wrapped token is a tokenized version of another cryptocurrency. It has the same value of the original unwrapped asset it represents.
Wrapped tokens are created to allow transactions of these assets on another blockchain. Because blockchains are distinct systems, some cryptocurrency coins may not be able to transact on certain blockchains. For instance, native Bitcoin (BTC) cannot be used on the ETHereum platform.
Think of this as visiting another country: when you visit a foreign country, you change money because that country may not accept money of your home currency. Wrapped tokens are created to overcome this problem.
What is wrapped matic?
Wrapped matic is a wrapped version of Matic, which is also known as Polygon. Polygon is an ETHereum token that is the native currency of the Polygon Network, which is a decentralised Ethereum platform that enables developers to build dApps with low transaction fees and greater security.
Although Polygon is a layer-2 scaling solution for ETHereum, the Polygon Network still relies on the ERC-20 token standard to determine how tokens are transacted and how to maintain a consistent record of transactions on the Polygon network. Unfortunately, Matic does not conform to the ERC-20 standard.
Wrapped matic (wMATIC) was first tradable on 23rd March, 2021. It is equipped with the smart contracts of an ERC-20 token. This allows us to trade matic for other ERC-20 tokens on decentralized platforms like QuickSwap.
How to buy wrapped matic?
Now that we understand what wrapped matic is, you may want to purchase wrapped matic. This is rather tricky, because wrapped matic is not available on the Coinbase platform. Furthermore, it cannot be purchased with fiat money. There are other exchanges which permit the trading and transferring of wrapped matic.
Based on CoinMarketCap, the main cryptocurrency exchanges for trading wrapped matic are PancakeSwap (V2), UniSwap (V3) Polygon, Serum DEX, QuickSwap and ApeSwap (Polygon). Other exchanges such as Huobi also facilitate such exchanges.
In Conclusion
What is wrapped matic? In a nutshell, wrapped matic is a wrapped version of the token matic, which accommodates certain functions that a matic token is unable to perform. If you want to trade on decentralized ETHereum platforms such as QuickSwap and PancakeSwap, we recommend you to get your first wrapped matic tokens today.
