Wrapped AVAX

Wrapped AVAX, or WAVAX, is an ERC-20 compatible wrapper contract around the AVAX token. It was created to provide standardized interfaces for the AVAX token, which lacked these on Avalanche's C-Chain, similar to how ETH is treated on Ethereum.

The WAVAX implementation is based on the Canonical WETH developed by the Ethereum community, with modifications to reflect the new token name and symbol. This contract has been thoroughly audited and has the same security characteristics as the Gnosis WETH implementation, which has been in circulation for several years.

Historical price data for WAVAX is available on various platforms such as CoinMarketCap, Yahoo Finance, and BitScreener, providing daily, weekly, or monthly formats for tracking its price history.

Wrapped AVAX (WAVAX) is a token that represents the native AVAX token on the Avalanche blockchain but conforms to the ERC20 token standard. This allows WAVAX to be used on platforms that support ERC20 tokens, increasing its functionality and interoperability across different blockchain networks.

WAVAX is created by wrapping AVAX tokens, which means that for every AVAX token deposited, one WAVAX token is issued. This process is reversible, and WAVAX can be converted back to AVAX at a 1:1 ratio. This wrapping mechanism is similar to how stablecoins work, where a token is pegged to the value of another asset, in this case, the native AVAX token.

The main benefit of WAVAX is that it enables the use of AVAX on platforms that do not natively support the Avalanche blockchain. This includes decentralized exchanges (DEXs) and other decentralized finance (DeFi) applications that primarily use ERC20 tokens. By wrapping AVAX into WAVAX, users can participate in these ecosystems without needing to convert their AVAX to another cryptocurrency.

The WAVAX contract is based on the implementation of Canonical WETH, a widely used and audited ERC20 wrapper contract. This ensures that WAVAX inherits the same security characteristics as the Gnosis WETH implementation, which has been in circulation for several years.

• WAVAX is an ERC20-compatible token that represents AVAX.
• WAVAX is created by wrapping AVAX tokens.
• WAVAX can be converted back to AVAX at a 1:1 ratio.
• WAVAX enables the use of AVAX on ERC20-compatible platforms.
• WAVAX is based on the Canonical WETH implementation, ensuring robust security.

In summary, Wrapped AVAX (WAVAX) is a token that allows the native AVAX token to be used on platforms that support ERC20 tokens, increasing its functionality and interoperability across different blockchain networks.

Wrapped AVAX (WAVAX) has several strengths that make it a valuable asset in the Avalanche ecosystem:

1. ERC-20 Compatibility: WAVAX is an ERC-20 compatible token, which means it can be easily integrated into DeFi applications and other platforms that support ERC-20 tokens. This compatibility allows for seamless interactions with various blockchain networks and applications.

2. Interoperability: WAVAX enables the use of AVAX across different blockchain networks, making it easier to trade, lend, or borrow assets. This interoperability is crucial for facilitating cross-chain transactions and expanding the reach of the Avalanche network.

3. Standardized Interface: WAVAX provides a standardized interface, which makes it interchangeable with other ERC-20 tokens. This standardization simplifies the process of integrating WAVAX into various applications and platforms.

4. 1:1 Ratio with AVAX: WAVAX operates on a 1:1 ratio with AVAX, meaning that one WAVAX token is equal to one AVAX token. This ratio ensures that the value of WAVAX is directly tied to the value of AVAX, maintaining a consistent and predictable relationship between the two tokens.

5. Passive Income Opportunities: WAVAX can be staked to earn passive income through various DeFi platforms, such as ReHold, which offers up to 200% APR on WAVAX Duals. This incentivizes users to participate in the network's ecosystem and provides a means to generate revenue.

6. Security: The WAVAX contract is based on the Canonical WETH implementation, which has been thoroughly audited and has a proven track record of security. This ensures that WAVAX inherits the same security characteristics as the Gnosis WETH implementation.

These strengths make WAVAX a versatile and valuable asset within the Avalanche ecosystem, facilitating cross-chain transactions, DeFi applications, and passive income opportunities.

Wrapped AVAX (WAVAX) carries several risks:

1. Counterparty Risk: The entities involved in issuing and managing WAVAX may fail to fulfill their obligations, impacting the token's value and functionality.

2. Centralisation Risk: WAVAX may be issued by a single central authority, which can lead to a lack of decentralisation and potential vulnerabilities.

3. Regulatory Risks: New laws or regulations may restrict or prohibit WAVAX, affecting its use and value.

4. Technical Risks: Smart contract bugs, hacking attempts, network congestion, or other technical issues can impact WAVAX and the blockchains it trades on.

5. Lack of Protection: Investments in WAVAX are not protected by the Financial Services Compensation Scheme (FSCS) or the Financial Ombudsman Service (FOS).

6. Volatility: The value of WAVAX can drop rapidly due to market fluctuations, and there is no guarantee that it can be easily sold at any given time.

7. Operational Failings: Technical outages, cyber-attacks, and other operational issues can cause delays and difficulties in managing WAVAX.

8. Complexity: The complexity of WAVAX and its underlying technology can make it difficult for users to fully understand the associated risks.

These risks highlight the importance of careful consideration and thorough research before investing in WAVAX.

• Ava Labs: The team behind Wrapped AVAX (WAVAX), responsible for developing the ERC-20 compatible wrapper contract around the AVAX token.