🔄Wrap & Unwarp

Wrap & Unwrap refers to the process of converting a specific token into a wrapped token or reverting a wrapped token back to its original form. Kommune's Wrap & Unwrap service allows users to wrap KoKAIA into wKoKAIA or unwrap wKoKAIA back into KoKAIA.

KoKAIA is characterized by its real-time interest accrual, which increases the token quantity. Additionally, users can exchange it for KAIA on a 1:1 basis through the unstaking process, making it easy to track the total amount of KAIA they hold. However, due to KoKAIA's increasing quantity in real-time, there are challenges in providing liquidity for KoKAIA in typical decentralized exchange (DEX) pools. This complexity also extends to operating pools paired with KoKAIA.

To address these issues, wKoKAIA was introduced. Since wKoKAIA has a fixed quantity, it can be used to operate pools more effectively. Furthermore, when unwrapped, users receive the quantity of KoKAIA that includes all the accrued interest, facilitating easier liquidity provision and management.