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WrapperToken, A CBC20 Token Standard Extension for Wrapping and Unwrapping Tokens

CIP-103 ● Category: CBC ● Tag: DRAFT ● ● 2 min read

WrapperToken - A CBC20 Token Standard Extension

Abstract​

This CIP introduces the "WrapperToken" contract, an extension of the BaseToken contract designed to wrap other CBC20 tokens. This contract allows users to "buy" (wrap) and "sell" (unwrap) a specific CBC20 token, effectively creating a wrapped version of the original token. This functionality helps create tokenized versions of existing assets, enhancing utility in various decentralized finance (DeFi) applications.

Motivation​

The motivation behind the WrapperToken contract is to provide a standardized way to create wrapped tokens. Wrapped tokens represent other assets on different blockchains or create modified versions of existing tokens with additional functionalities, such as staking, governance, or enhanced security features.

Specification​

The WrapperToken Contract​

Key Features:

  • Token Wrapping: A mechanism to wrap an existing CBC20 token, minting an equivalent amount of the wrapped token.
  • Token Unwrapping: A mechanism to unwrap the wrapped token, burn the wrapped token, and return the original token to the user.
  • Wrapped Token Reference: Holds a reference to the CBC20 token being wrapped.

Technical Details​

  • Blockchain Compatibility: Core Blockchain (Ylem Version >0.8.0)
  • Core Functions:
    • buy(uint256 amount): Wraps the specified amount of the original token and mints an equivalent amount of the wrapped token.
    • sell(uint256 amount): Burns the specified amount of the wrapped token and returns an equivalent amount of the original token.
  • Token Reference:
    • _WRAPPED_TOKEN: An immutable reference to the CBC20 token being wrapped.

Rationale​

The WrapperToken contract facilitates the creation of wrapped tokens, which is essential in cross-chain applications and extends existing tokens' functionalities. This flexibility allows for greater interoperability and utility within the Core Blockchain ecosystem.

Backward Compatibility​

The contract is compatible with the CBC20 standard, ensuring wrapped tokens interact seamlessly with existing CBC20-compliant platforms and wallets.

Security Considerations​

Security considerations include ensuring the integrity of the wrapping and unwrapping processes and safeguarding against potential vulnerabilities in the token transfer mechanism. Regular security audits are recommended.

Conclusion​

The WrapperToken contract provides a standardized and secure way to create wrapped versions of CBC20 tokens, enhancing their utility in the Core Blockchain ecosystem, particularly in DeFi applications.

Copyright and related rights waived via CC0.