Written by Logan Smith

On July 16, 2021

Understanding Proton-wrapped xtokens

Wrapped cryptocurrencies are a highly useful update to the broader cryptocurrency economy. You can think of wrapped cryptocurrencies as a crypto that has been attached at the hip to a different blockchain’s token. As a result, that portion of crypto can be used on the other blockchain’s network, making it easier to integrate into dApps and other projects.

One of the most popular forms of cryptocurrencies, wrapped Bitcoin (WBTC), has grown in overall market value as an increasing number of traders find ways to use BTC on the Ethereum network. However, as we outlined in our deep-dive into Proton-wrapped BTC (XBTC), Bitcoin running on Ethereum is held back by all of the downsides of the Ethereum network. Proton simply does token wrapping better.

To understand how Proton-wrapped cryptocurrencies are so efficient, we first need to understand what makes Proton different from the competition.

The Proton blockchain is capable of up to 4,000 transactions per second, meaning users will experience virtually instant transactions when using Proton or Proton-wrapped cryptocurrencies. The Proton blockchain also charges no gas fees to end users – transactions on Proton are free. This means spending $10 in the Proton ecosystem gets you $10 of whatever coin you were purchasing; no hidden fees, no surprise charges.

Any cryptocurrency that is running as an xtoken is pegged to the value of that same currency on its original blockchain, allowing Proton users a way to accumulate an asset that monitors the price of their target asset without having to leave the safety of the Proton ecosystem. This allows Proton users a way to turn the proceeds of yield farming, short staking, or long staking directly into other cryptocurrencies via the use of Proton Swap for their target xtoken. Additionally, when Proton Lend comes fully online, users will be able to earn interest on their xtokens.

When you wrap a cryptocurrency in Proton it becomes an xtoken. Xtokens enjoy all of the benefits of the Proton blockchain, including:

  • Instantaneous transactions
  • No gas fees for end users
  • The ability to process microtransactions
  • Access to Proton Swap
  • Easy integration into Proton dApps and projects

Proton-wrapped cryptocurrency (xtokens) means crypto that is faster, cheaper to use, and more accessible than ever before.

Currently, there are a number of cryptocurrencies that have been wrapped with mainnet support in Proton, including:

  • Metal (XMT)
  • Bitcoin (XBTC)
  • Ethereum (XETH)
  • USDC (XUSDC)
  • TrueUSD (XTUSD)
  • Tether (XUSDT)
  • Paxos (XPAX)
  • Paxos Gold (XPAXG)
  • Uniswap (XUNI)
  • Litecoin (XLTC)
  • Binance chain (XBNB)
  • Bitcoin Cash (XBCH)
  • EOS (XEOS)

We anticipate wrapping many more cryptocurrencies in Proton, allowing more options for Proton users. Cryptocurrencies in the immediate pipeline to become an xtoken include:

  • DOGE (XDOGE)
  • BSV (XBSV)
  • DASH (XDASH)
  • DOT (XDOT)
  • HBAR (XHBAR)

Proton-wrapped cryptocurrencies are how crypto was meant to be used. As the Proton ecosystem continues to grow, you can expect to see xtokens take an increasingly large role. Users have found xtokens to be a highly attractive and useful aspect of Proton, and we anticipate our users will be thrilled with the additions that are coming next.

Interested in having your cryptocurrency wrapped or minted on Proton to gain access to the Proton ecosystem? Contact our development team by emailing hello@protonchain.com, we’d love to get to know you and your project and find out how we can work together.

Welcome to Proton, we’re glad you’re here.

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