Post
Topic
Board Altcoin Discussion
Re: The problem of wrapped tokens & DEX
by
nelson4lov
on 20/09/2023, 22:35:22 UTC
Your concerns for bridges and Wrapped tokens are valid. Wrapped tokens in particular has been put up for debates on multiple occasions and the concept is flawed because there is essentially a trust in a centralized party to honour agreements every time BTC or Ethereum tokens are wrapped. But unlike bridges, I'm not sure there have been a direct attack on  Wrapped tokens that resulted in loss of funds since the value these wrapped tokens have are backed by the actual collateral asset held by BitGo Trust.