The Value of Wrapped Tokens
Before we move onto exploring the value held by wrapped tokens, let’s have a look at what they are.
In simple words, wrapped tokens are the tokenized versions of the core assets like cryptos etc which can exist on a different blockchain. This way, the benefits of that asset are carried to other blockchain as well.
A wrapped token directly depends on the value of its backed asset or crypto which means that the value of the token will always be equal to the value of its core asset.
Team RootKit takes this idea a step further. RootKit established the value of the wrapped token in such a way that it never falls below a defined price floor. This means that even if the asset or crypto that it represents falls in value, the value of the wrapped token will never fall below the floor price. This makes RootKit’s wrapped tokens, known as the UpTokens, more valuable than the asset they represent.
To ensure this, RootKit has come up with unique ERC Elite wrapped tokens called ERC-31337.
RootKit has so far wrapped Ethereum, BNB, Tether, Cake and Matic coins into their respective UpETH, UpBNB, UpTether, UpCake and UpMatic tokens.
All these ERC-31337 tokens exploit RootKit’s unique technology of BuyBacks in which case the liquidity can be reused and the token prices can be pumped up whenever needed. Hence, these RootKit tokens only go upward in price.