Convert WFTM to TRY

Wrapped Fantom (WFTM) is the standardised, cross-chain representation of the native FTM token, enabling its use within the expansive Ethereum and broader multi-chain DeFi ecosystem.

Key takeaways

• WFTM is an ERC-20 token that represents Fantom's native FTM on other blockchains, primarily Ethereum.
• It is created through a custodial or non-custodial bridging process, locking FTM on the Fantom network to mint an equivalent amount of WFTM on the destination chain.
• Its primary value lies in unlocking FTM's liquidity for use in Ethereum-based decentralised applications (dApps), decentralised exchanges (DEXs), and lending protocols.
• The token maintains a 1:1 peg to FTM, with its value derived entirely from the underlying locked FTM assets.
• You can trade WFTM on major exchanges like BTCC via spot or perpetual contract markets.

What is Wrapped Fantom? Key Specifications & Tokenomics

Wrapped Fantom (WFTM) is a bridged asset that allows the Fantom network's native currency to operate seamlessly on foreign blockchain environments, starting with Ethereum.

Who created Wrapped Fantom (WFTM)?

WFTM isn't created by a single entity in the traditional sense but is rather a standardised token format enabled by bridging protocols.

• The Fantom Foundation, the team behind the Fantom blockchain, officially supports and often provides the canonical bridge for creating WFTM, ensuring trust and security in the wrapping process.
• The actual WFTM token contracts on chains like Ethereum are deployed and managed by these bridging services. The most common version is the officially endorsed one, where FTM tokens are locked in a secure smart contract on the Fantom network, and an equivalent number of WFTM tokens are minted on Ethereum.
• Third-party cross-chain bridge protocols (like Multichain, formerly Anyswap, in the past) have also facilitated the creation of WFTM, though using the official bridge is generally recommended for security.

How does Wrapped Fantom (WFTM) work?

WFTM functions as a cross-chain liquidity wrapper, and its operation is based on a locking-and-minting mechanism.

• Wrapping Process: To create WFTM, a user sends native FTM tokens from the Fantom network to a designated smart contract often called a "bridge." This contract securely locks the FTM. Once confirmed, an equivalent amount of WFTM (an ERC-20 token) is minted and delivered to the user's address on the Ethereum network.
• Underlying Peg: Each WFTM token is backed 1:1 by a real FTM token held in reserve within the bridge's custody. This collateralisation ensures that WFTM's value is always pegged to FTM.
• Unwrapping Process: To convert WFTM back to native FTM, the user sends their WFTM to the bridge contract on Ethereum, which then burns (destroys) those tokens. Subsequently, the originally locked FTM on the Fantom network is released and sent back to the user's Fantom wallet address.
• Utility on Ethereum: Once in possession of WFTM, users can interact with the entire Ethereum DeFi landscape—providing liquidity on DEXs like Uniswap, using it as collateral for loans on Aave, or yield farming in various protocols.

What makes Wrapped Fantom (WFTM) unique and valuable?

WFTM's value proposition is centred on interoperability and liquidity expansion for the Fantom ecosystem.

• Gateway to Ethereum Liquidity: Its primary uniqueness is acting as a portal, allowing FTM holders to access the deep liquidity, extensive user base, and mature application suite of the Ethereum ecosystem without selling their FTM.
• Standardised Compatibility: By conforming to the ERC-20 standard, WFTM becomes instantly recognisable and usable by thousands of existing Ethereum wallets, dApps, and services, which would not natively support the Fantom Opera chain's token format.
• Risk Mitigation for DeFi Users: For DeFi participants on Ethereum, WFTM offers exposure to Fantom's ecosystem performance and potential without the need to manage assets across multiple chains or use less secure, unofficial bridging solutions.
• Enhanced Utility for FTM: It transforms FTM from a single-chain asset into a multi-chain DeFi building block, significantly increasing its potential use cases and utility.

What is Wrapped Fantom (WFTM) used for?

WFTM is utilised almost exclusively within the context of decentralised finance on chains other than Fantom, especially Ethereum.

• Decentralised Trading: It is a major trading pair on Ethereum-based DEXs. Users swap WFTM for other ERC-20 tokens or provide it as liquidity in trading pools to earn fees.
• Collateral in Lending Protocols: WFTM can be deposited as collateral in lending markets like Aave or Compound on Ethereum to borrow other assets or to earn interest on the supplied tokens.
• Yield Farming and Liquidity Mining: Many DeFi protocols incentivise liquidity by offering yield farming rewards. Users can stake their WFTM in these schemes to earn additional token rewards.
• Cross-Chain Arbitrage: Traders use WFTM to capitalise on price differences for FTM between the Fantom network and Ethereum-based markets.

How Is the Wrapped Fantom (WFTM) Ecosystem Developing?

The WFTM ecosystem is intrinsically linked to the adoption of Fantom and the growth of cross-chain infrastructure.

• Bridge Diversification: While the official Fantom bridge remains core, the ecosystem benefits from integrations with other secure bridging solutions, offering users more options for wrapping and unwrapping.
• Expansion to Layer 2s: WFTM liquidity is increasingly available on Ethereum Layer 2 scaling solutions like Arbitrum and Optimism, enabling faster and cheaper transactions while still being composable with the main Ethereum ecosystem.
• Integration in DeFi Lego: New and existing DeFi protocols on Ethereum continue to list and integrate WFTM as a supported asset for collateral, lending, and liquidity, steadily expanding its utility.
• Dependence on Fantom's Health: The security and value of WFTM are directly tied to the Fantom network and the solvency of its bridge reserves. Developments on Fantom's mainnet, such as the launch of the new Sonic technology stack, indirectly strengthen confidence in WFTM.

How to mine Wrapped Fantom (WFTM)?

WFTM cannot be mined. It is a synthetic token created through a bridging process, not through a proof-of-work or proof-of-stake consensus mechanism.

• The only way to "create" new WFTM is by locking native FTM tokens in an official or audited bridge contract. This is a custodial or smart contract-based operation, not mining.
• The total supply of WFTM in circulation on Ethereum is always equal to the amount of FTM that has been locked in the bridge and has not yet been redeemed.

How to keep your WFTM Coin safe?

Securing WFTM involves securing the private keys to the Ethereum wallet where it is held and trusting the bridge's security.

• Use a Secure Wallet: Store your WFTM in a reputable, non-custodial Ethereum wallet where you control the private keys or seed phrase. Hardware wallets like Ledger or Trezor offer the highest security for long-term storage.
• Verify Contract Addresses: Always double-check the official WFTM token contract address when receiving or interacting with the token to avoid scams and counterfeit tokens.
• Trust the Bridge: When wrapping or unwrapping, use the official, well-audited Fantom bridge or other highly reputable services. The security of your underlying FTM depends on the bridge's contract integrity.
• Practice General Crypto Hygiene: Be wary of phishing sites, never share your seed phrase, and keep your wallet software updated.

How to buy WFTM Coin?

WFTM is a popular cryptocurrency listed on many exchanges. However, it is recommended to trade on a major platform like BTCC exchange for higher liquidity and better customer support.

1. Register a BTCC Account: Sign up using your email or mobile number and complete the KYC verification to unlock more features and benefits of the platform.
2. Deposit Funds: Deposit fiat currency (via bank transfer, card, or third-party payment) or transfer USDT from an external wallet into your BTCC account. You can follow this guide.
3. Start Trading: Go to the trading page and search for the spot trading pair WFTM/USDT or the perpetual contract WFTM/USDT.
4. Place an Order: Enter the amount of WFTM you wish to purchase and submit the order. For contract trading, you can also choose to go short (sell) and adjust the leverage multiplier according to your strategy and risk tolerance.
5. Confirm Your Purchase: For spot purchases, check your personal account to see if the coins have arrived. For contract trades, check the trading page to see if your order was filled successfully.