Plenty of existing crypto assets have been tokenized on the Ethereum network over the years. Waves is the most recent project to embrace this approach. Through the ERC20 WAVES token, the team aims to achieve interoperability with Etheruem’s ecosystem.
Tokenizing WAVES on Ethereum
On paper, Waves and Ethereum are somewhat competing blockchain ecosystems. Both have their own strengths and weaknesses. One thing they both have in common is a lack of easy interoperability. That is a situation that needs to be addressed before this industry can be taken to a new level.
Waves’ gateway will allow for transferring native tokens to Ethereum. A great way to enhance interoperability between the two blockchains, as well as expand the functionality of the WAVES token. It will gain access to DeFi, DEXes, and everything else Ethereum has to offer today, or in the future. Exploring the dApps on this “rival” blockchain could prove worthwhile.
At the same time, this gateway offers the opposite option too. Ethereum holders can explore Waves’s dApps, DEXes, and other applications and services at their own leisure. Tokens of both chains can move through the interface. In its current form, there will be a withdrawal fee of 2 WAVES tokens, but depositing funds is free of charge.
As one of the early projects, there is now a WAVES to USDN pool on the Uniswap platform. It is just one example of the possibiltiies this gateway provides. It is likely more trading markets will pop up over time. That said, the true test lies in bringing the best of both blockchains together in a meaningful manner. If and when that will happen, remains undetermined.
A Logical Choice
According to the blog post, Ethereum is the largest ecosystem in terms of dApps and users. Bringing Waves to this ecosystem makes a lot of sense. In the near future, it will also become possible to stake this token directly through Ethereum wallets. No official launch date has been announced for this specific feature.
Technically speaking, it is not the first Waves-Ethereum cooperative development. Both USDN and NBST have been available for Ethereum users in the past few months. Part of these tokens’ supply resides in DeFi protocols. As this collaboration between the two systems is now strengthened, interesting things are bound to happen.
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