What Is Winding Down?
In decentralized finance (DeFi), winding down refers to converting wrapped tokens back to their original form by navigating through multiple platforms and potentially involving other tokens.
A Brief Overview
When a token is wrapped, it is typically done to enable its use on a different blockchain or to leverage additional functionalities.
Winding down involves reversing this process and returning the token to its original state.
It’s important to note that winding down differs from simple token unwrapping, as it involves the interaction and conversion of multiple tokens throughout the process.