What Is Wrapped Centrifuge (WCFG)?

Wrapped Centrifuge (WCFG) is an Ethereum token that’s intended to represent Centrifuge (CFG) on the Ethereum blockchain. Wrapped tokens are essentially the crypto tokens pegged or attached to the value of another crypto. These are called wrapped because the original crypto is put in a wrapper, a kind of digital vault that permits the wrapped version to be built on another blockchain. Therefore, WCFG is not CFG, but rather a separate token that’s designed to track CFG’s price. Moreover, WCFG complies with ERC20 standards, which define a common set of rules for Ethereum tokens to be followed in the Ethereum ecosystem. 

Speaking of Centrifuge (CFG), it is the native asset of the Polkadot-based Centrifuge Chain. As mentioned on the platform’s website, Centrifuge is known to fill the gap between multiple real-world assets. Using Centrifuge, borrowers can finance their real-world assets without having to go through banks or other central intermediaries. In simpler words, Centrifuge is a protocol that connects DeFi to the real world. 

As previously stated, while the CFG token is unique to the Centrifuge Chain, it can also be bridged to Ethereum and utilized as an ERC20 token backed by CFG at a 1:1 ratio. When migrated to Ethereum, each WCFG is backed by one CFG locked up in the bridge account on Centrifuge Chain. Users can move between Ethereum and Centrifuge at any time without any constraints.

Furthermore, while using CFG on the Centrifuge Chain, users can participate in governance and staking and earn rewards. Also, it allows he users to pay for fees on the Centrifuge Chain. On the other hand, WCFG on Ethereum allows users to interact with DeFi apps that support ERC20 tokens. Users can also use WCFG within Ethereum and hold it in their Ethereum wallet.

History of Wrapped Centrifuge (WCFG)

Wrapped Centrifugewas launched by the founders of Centrifuge, Lucas Vogelsang and Martin Quensel. Vogelsang, the CEO of Centrifuge, was the project's founding engineer. He also created an e-commerce start-up company in 2010 and afterward began working on KaufDA.

Quensel, the current COO of Centrifuge, was also a cofounder of Taulia. He began his career at SAP as a software engineer and architect, and he has extensive experience in product development and innovation. He was also the CTO of ReadSoft's Lab for Solutions.

How Are New Wrapped Centrifuge (WCFG) Tokens Earned?

The participants can stake and earn rewards from their WCFG tokens by converting them into CFG tokens. Centrifuge token (CFG) utilizes a nominated-proof-of-stake (NPoS) consensus algorithm that employs Centrifuge to stake value, reward users, and allow for an on-chain governance mechanism. This on-chain governance empowers CFG holders to guide the development of Centrifuge.

Nominated proof of stake (NPoS) is the mechanism of selecting validators to be able to participate in the consensus protocol. NPoS is a proof-of-stake variant that is utilized in Substrate-based blockchains like Polkadot. 

How Many Wrapped Centrifuge (WCFG) Tokens Are There?

The total maximum supply of WCFG tokens is capped at around 430 million WCFG.

How to Buy Wrapped Centrifuge (WCFG) Tokens

Users can trade WCFG tokens at various exchanges including Coinbase. It's secure, safe, and easy.