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Wrapped XDAI Price (WXDAI)
$0.994464
0.56%
Wrapped XDAI Price Chart (WXDAI/USD)
Last updated 22 Jun 2022, 09:11AM UTC. Currency in USD.
Markets
| # | Exchange | Pair | Price | Spread | Volume(24h) | Trust |
|---|
WXDAI Price Statistics
- Wrapped XDAI Price Now $1
- 24h Low / 24h High $1 / $1
- Trading Volume $424,088
- Market Cap Rank #0
- Market Cap $0
- Volume / Market Cap 0.0000
-
All-Time High
$7 -85.10%
Sep 06, 2021 -
All-Time Low
$1 46.05%
Jan 29, 2022
What is Wrapped xDai (wxDAI) Cryptocurrency?
Wrapped xDai (wxDAI) is a form of digital currency that operates on the xDai blockchain. It is designed to bring the stability of the DAI stablecoin to the xDai network, which is a layer 2 scaling solution for the Ethereum blockchain.
The xDai network bridges the gap between scalability and the benefits of Ethereum by utilizing a Proof-of-Authority (PoA) consensus mechanism. This consensus model enables fast and cheap transactions, making it an ideal blockchain for various use cases such as decentralized finance (DeFi) applications, social payments, and gaming.
However, xDai has its native cryptocurrency called STAKE, which is used for staking and participating in network governance. While STAKE serves its purpose within the xDai ecosystem, it lacks the stability associated with a stablecoin.
Wrapped xDai (wxDAI) solves this stability issue by providing a token that is pegged 1:1 to the value of DAI. DAI is a decentralized stablecoin anchored to the US dollar, known for its price stability. By wrapping DAI onto the xDai chain, wxDAI allows users to enjoy both the scalability benefits of xDai and the stability offered by DAI.
When users wrap their DAI into wxDAI, the equivalent amount of DAI is locked in a smart contract, and an equal number of wxDAI tokens are minted on the xDai chain. These wrapped tokens can then be freely transacted within the xDai ecosystem, enabling users to engage in various activities without worrying about price fluctuations.
As wxDAI maintains a stable value, it opens up opportunities for users to leverage decentralized applications (dApps) and services on the xDai network, such as trading, lending, and payments. Users can easily unwrap their wxDAI back into DAI at any time if they wish to return to the Ethereum mainnet.
The Benefits of Wrapped xDai
1. Scalability: By operating on the xDai network, wrapped xDai inherits its scalability advantages. Transactions are fast and affordable, enabling efficient and seamless transactions within the ecosystem.
2. Stability: Wrapped xDai is pegged to the value of DAI, a stablecoin that maintains its price close to $1. This stability protects users from the volatility commonly associated with cryptocurrencies.
3. Accessibility: Users can easily wrap and unwrap their DAI into wxDAI, providing them with the flexibility to move funds between Ethereum and xDai networks and take advantage of the respective benefits offered by each chain.
4. Interoperability: Wrapped xDai can be used in conjunction with other DeFi protocols and dApps within the Ethereum ecosystem. This opens up a world of possibilities for users interested in leveraging both xDai and Ethereum's infrastructure.
Conclusion
Wrapped xDai (wxDAI) brings stability to the xDai blockchain by providing users with a token directly pegged to the value of DAI. By removing the concerns of price volatility, wxDAI allows users to explore the potential of the xDai ecosystem and its scalable infrastructure without compromising stability. As the popularity of xDai and wrapped xDai grows, we can expect more innovative use cases and collaborations within the decentralized finance space.