Ethereum blockchain’s ERC-20 and ERC-721 tokens are now available on Tezos, thanks to the newly launched decentralized bridge called the Wrap Protocol (WRAP) by the tech firm Bender Labs. Notably, ERC-20 is the technical standard on which most of Ethereum’s popular tokens are currently based. This includes Chainlink (LINK), UNISWAP (UNI), and more. On the other hand, ERC-721 is the standard for the recently booming non-fungible tokens (NFTs), thus, making it available on Tezos as well.
As per the firm’s announcement, the WRAP bridge would allow users to openly transfer the aforementioned Ethereum-based tokens directly on Tezos by promptly rendering them compatible with both chains. It further notes that the Wrap Protocol does just that by ‘wrapping’ the Ethereum tokens in Tezos’ FA2 token standards, producing a one is to one representation without the risks of any technical faults or price fluctuations.
Much like Ethereum, Tezos has its dedicated decentralized finance (DeFi) sector as well. That being said, unlike Ethereum’s, which is still on a current transition to a proof-of-stake consensus system, staking on Tezos is already in full swing. This means that the WRAP bridge also allows ETH holders the chance to early stake and hopefully earn substantial passive income.
As per Bender Labs, Wrap Protocol has the potential to be the principal factor that could take the DeFi sector to even grander heights. The firm then added that WRAP is poised to spark widespread adoption of open monetary frameworks that run on public chains. Clearly, Bender Labs has high hopes for its newly launched decentralized bridge project.