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Wrapped Matic

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Discover Wrapped Matic's fundamentals and latest news.

This content was generated by Whalee (BETA), an AI crypto assitant that analyses cryptocurrencies. Informations can be incomplete and/or erroneous. Please always double check and DYOR.

What is Wrapped Matic?

Wrapped Matic (WMATIC) is a DeFi-compatible version of MATIC, the native currency of the Polygon blockchain. It is "wrapped" to make it compatible with DeFi smart contracts, allowing for seamless interaction with decentralized finance applications. 1 WMATIC is always equal to 1 MATIC, and it is highly correlated to the overall market. WMATIC is used for gas fees and security on the Polygon network and is a mid-cap asset with a fixed supply.

How is Wrapped Matic used?

Wrapped Matic (WMATIC) is a tokenized version of MATIC, the native cryptocurrency of the Polygon network. It is designed to facilitate seamless integration and interaction with Ethereum-based protocols and applications. WMATIC serves several key purposes:

  1. Staking and DeFi Activities: Wrapped Matic enables users to engage in staking activities on both the Ethereum and Polygon platforms, offering a versatile tool for earning rewards through network participation.

  2. Liquidity and Trading: WMATIC enhances liquidity within the DeFi space, allowing users to trade it for other tokens. This feature is crucial for users looking to diversify their portfolios or access specific assets without exiting the blockchain environment.

  3. Interoperability: Wrapped Matic provides a bridge between the original MATIC token and the broader Ethereum ecosystem, enhancing the interoperability and functionality of blockchain networks. This supports the growth and development of the DeFi sector.

  1. Passive Income: Users can earn passive income by staking their WMATIC tokens on platforms like ReHold, which offers up to 180% APR on certain pairs.

  2. Decentralized Finance (DeFi) Protocols: WMATIC is used in various DeFi protocols built on the Polygon network, further increasing its value and utility.

Overall, Wrapped Matic plays a pivotal role in the decentralized finance ecosystem, offering a versatile and efficient tool for users to engage in various DeFi activities and earn rewards.

How do I store Wrapped Matic?

To store Wrapped Matic (WMATIC) tokens, you can use various crypto wallets. Here are the steps and options:

Choosing a Wallet
  1. Select a Wallet: Choose a reliable crypto wallet that supports WMATIC. Popular options include:
    • MetaMask: A widely used Web3 wallet that supports WMATIC.
    • Trust Wallet: A user-friendly wallet that supports multiple cryptocurrencies, including WMATIC.
    • Coinbase Wallet: A secure wallet that supports a variety of cryptocurrencies, including WMATIC.
Setting Up the Wallet
  1. Create an Account: Download and install the chosen wallet. Create an account by providing personal information and setting a strong password.
  2. Seed Words: Note down the provided Secret Recovery Phrase or Seed Words carefully. This is essential for recovering your wallet in case of loss.
Storing WMATIC
  1. Transfer WMATIC: Once you have WMATIC tokens, transfer them to your chosen wallet. Ensure the wallet is connected to the correct blockchain (e.g., Ethereum or Binance Smart Chain) depending on where you purchased WMATIC.
  2. Hot or Cold Wallet: Decide whether to use a hot wallet (for frequent trading) or a cold wallet (for long-term storage).
Additional Tips
  • Research: Understand the differences between hot and cold wallets to choose the best option for your needs.
  • Security: Always keep your wallet and recovery phrase secure to prevent unauthorized access.

By following these steps, you can safely store your Wrapped Matic (WMATIC) tokens in a crypto wallet.

How to buy Wrapped Matic?

To buy Wrapped Matic (WMATIC) tokens, follow these steps:

  1. Choose a Crypto Wallet:

    • Select a reliable crypto wallet that supports WMATIC, such as Coinbase Wallet, MetaMask, or TrustWallet.
    • Download the wallet extension on Google Chrome or the wallet app from the iOS App Store or Google Play.
    • Create an account, providing personal information and a strong password.
    • Note down the Secret recovery phrase or Seed Words carefully for future reference.
  2. Set up Your Wallet:

    • Create a new wallet address or import an existing one.
    • Ensure you have the seed phrase and keep it secure.
  3. Buy Your Base Currency:

  • Choose a cryptocurrency exchange platform and buy a base currency like Bitcoin, Ethereum, or Tether.
  • Consider the market trends, trading fees, and crypto taxes due to high volatility.
  1. Transfer Funds to Your Wallet:

    • Withdraw the base currency to your crypto wallet.
    • Log into your exchange account, provide your wallet address, and specify the amount to transfer.
  2. Choose a Decentralized Exchange (DEX):

    • Select a DEX that supports your wallet, such as Pancake Swap, Quickswap, or Sushiswap.
    • Ensure the DEX supports the wallet you chose in Step 2.
  3. Buy Wrapped Matic (WMATIC):

  • Connect your wallet to the DEX.
  • Select WMATIC from the list and enter the amount you want to trade.
  • Be cautious of scams and ensure you have the correct contract address if WMATIC is not listed.
  1. Monitor and Manage Your Tokens:
    • Keep track of your WMATIC tokens and adjust your portfolio as needed.
    • Be aware of market trends and diversify your portfolio to minimize risks.

By following these steps, you can successfully purchase and manage Wrapped Matic (WMATIC) tokens.

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History of Wrapped Matic

Wrapped Matic (WMATIC) is a DeFi-compatible version of MATIC, the native currency of the Polygon network. The Polygon network is a decentralized Ethereum platform that offers developers the ability to create dApps with lower transaction fees and faster processing times. MATIC is used to pay for gas fees on the network and for staking to secure the blockchain. However, MATIC does not conform to the ERC-20 token standard, which is widely used in DeFi protocols. To address this limitation, Wrapped Matic (WMATIC) was created using smart contracts to make an ERC-20 token that is compatible with DeFi protocols.

Wrapped Matic has a fixed supply, and each Wrapped Matic is always equal to one MATIC. The total supply of MATIC is capped at 10 billion tokens, with a significant portion distributed among the team, advisors, network operations, foundation, and ecosystem. A portion of fees paid to execute transactions on the Polygon network are burned, reducing the supply and increasing the token's scarcity. This deflationary effect is offset by inflationary token emissions to reward validators.

Wrapped Matic is highly correlated to the overall market and has no dependencies. It is primarily used in DeFi protocols built on the Polygon network, where its utility and demand contribute to its value. The price of WMATIC is subject to market demand and supply, as well as the adoption of the Polygon network. It is possible that the price of WMATIC could continue to rise with the growing interest in decentralized finance and the benefits of using the Polygon network.

Wrapped Matic can be staked to earn passive income, with platforms like ReHold offering up to 180% APR on pairs such as wMATIC/USDT, wMATIC/USDC, and wMATIC/DAI. This staking mechanism contributes to the liquidity of the WMATIC market and rewards users for their participation.

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How Wrapped Matic works

Wrapped Matic (WMATIC) is a tokenized version of the native cryptocurrency Matic (MATIC) on the Polygon network. It is created by "wrapping" Matic, which means depositing it into a smart contract that issues a corresponding token on another blockchain, typically Ethereum. This process allows Matic to be used on the Ethereum network, where it can interact with other tokens and smart contracts.

The main purpose of wrapping Matic is to enable its use in decentralized applications (dApps) and decentralized finance (DeFi) protocols that are built on Ethereum. These protocols often require tokens to be in the ERC-20 format, which is the standard for tokens on the Ethereum blockchain. By wrapping Matic, users can access these protocols and utilize Matic in a more versatile manner.

Wrapped Matic is essentially a certificate or a token that represents the underlying Matic. It has the same value as the original Matic and can be unwrapped at any time to retrieve the original asset. This process is typically done on a 1:1 ratio, meaning one WMATIC is equivalent to one MATIC.

Wrapped Matic can be bought, sold, and traded on various exchanges, both centralized and decentralized. It can also be stored in different types of wallets, including hot wallets for frequent trading and cold wallets for long-term storage. Additionally, WMATIC can be used for lending, staking, and yield farming to generate passive income.

In summary, Wrapped Matic is a tokenized version of Matic that allows it to be used on the Ethereum network, enabling its integration with various DeFi protocols and dApps. It is created by wrapping Matic into a smart contract and can be unwrapped at any time to retrieve the original asset.

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Wrapped Matic's strengths

Wrapped Matic (WMATIC) has several strengths:

  1. Improved Version of Matic: Wrapped Matic provides an upgraded and improved version of the original Matic token, enhancing its functionality and usability within the decentralized finance (DeFi) ecosystem.

  2. ERC-20 Compatibility: Wrapped Matic is designed to conform to the ERC-20 token standard, which allows it to seamlessly interact with Ethereum-based protocols and applications, thereby expanding its utility and adoption.

  3. Passive Income Opportunities: Wrapped Matic offers users the ability to earn passive income through staking activities on platforms like ReHold, which provides up to 180% APR on certain pairs, such as wMATIC/USDT and wMATIC/USDC.

  1. Enhanced Liquidity: Wrapped Matic facilitates liquidity within the DeFi space by being readily tradable for other tokens, making it a versatile tool for users seeking to diversify their portfolios or access specific assets.

  2. Interoperability: Wrapped Matic serves as a bridge between the original MATIC token and the broader Ethereum ecosystem, enhancing the interoperability and functionality of blockchain networks and supporting the growth of the DeFi sector.

  3. Fixed Supply: Wrapped Matic has a fixed supply, which can influence its value based on market demand and supply dynamics.

These strengths make Wrapped Matic a valuable asset within the DeFi ecosystem, offering users a range of benefits and opportunities for growth.

Wrapped Matic's risks

Wrapped Matic (WMATIC) carries several risks, including:

  • Counterparty risk: The entities involved in managing the underlying collateral assets may fail to fulfill their obligations.
  • Centralization risk: Wrapped tokens may be issued by a single central authority, which can compromise decentralization.
  • Regulatory risks: New laws or regulations may restrict or prohibit wrapped tokens, their issuance, trading, or redemption.
  • Technical risks: Smart contract bugs, hacking attempts, network congestion, or other issues can impact the wrapped tokens or the blockchains they trade on.
  • Security risks: Wrapped tokens are vulnerable to security breaches, which can result in losses.
  • Volatility: The value of WMATIC can drop quickly due to market fluctuations.

These risks highlight the importance of careful consideration and thorough research before investing in WMATIC or any other wrapped token.

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Wrapped Matic's ecosystem

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Wrapped Matic’s team

  • Jaynti Kanani (Co-Founder and CEO of Polygon): Jaynti Kanani is a key figure in the development of Polygon and its native token, MATIC, which is wrapped to create WMATIC.

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The fundamental analysis assistant for crypto value investors.

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