Re: The problem of wrapped tokens & DEX

wrapped tokens are "pegged" not bridged

bridges are sub networks/systems(not tokens themselves) that allow value of multiple mainnet pegged tokens to transfer together on that one bridge network that transfers between different mainnets

pegged token = value vehicle
bridge = transport network

Wrapped tokens are "pegged", I totally agree.
But pegged by who?
My answer is "pegged by the bridge".

For example USDT.BSC is USDT pegged by Binance.
Binance act as the main bridge, you give them real USDT issued by Tether in some other network, they give you wrapped USDT.BSC.
And what is realy important, they do it in both directions, for now.

And right now many other bridges can help you transfer USDT from other networks to BSC and back.
Now all these bridges work like a transport system.

Now imagine that Binance goes to bakrutsy, CS goes to jail, as it happens with FTX.
In the blink of an eye all bridges stop accepting USDT.BSC.
Because bridges are not transport system, they are specialized exchanges.

So, what is happening if the collateral address used to store the native BTC is still fine? Im concerned about the collateral address rather than bridge. It's caused by the bitcoin stored in the collateral address is the main reason that gives wrapped tokens 1:1 value.
Even if the bridge was collapse and the value of wrapped token will not be affected caused by that.

Imagine that the collateral BTC is still at the same addresses, and BitGo says that everything is fine.
They still accept BTC and give WBTC, but only in that direction.
The reverse direction does not work, no one can convert WBTC back to normal BTC.
Maybe they just lost the keys.
From time to time BitGo tweets that everything is fine, we'll fix it soon.
In this very imaginary situation, what happens to the price of WBTC if they don't fix the bridge in 1 month, 10 months, 10 years?
WBTC price soon goes down, and after several years will be 100 times less than actual BTC.

All I'm just saying is that native BTC is better than wrapped BTC, the risk is lower.
So it makes sense to look for how to trade native BTC instead of wrapped BTC.