What Is Winding Up?
In decentralized finance (DeFi), winding up refers to navigating through different projects and protocols to maximize yield for crypto tokens.
Enhancing DeFi Interoperability
Winding up often involves using wrapped tokens, which exist on one blockchain but are compatible with other blockchains to enable interoperability within the DeFi ecosystem.
The concept of wrapped tokens originated with Ethereum’s ERC-20 standard, and it has expanded to include various other wrapped tokens, such as wrapped Bitcoin (wBTC) that allows Bitcoin to be utilized in Ethereum-based DeFi applications.
In essence, winding up involves navigating through various projects and protocols to achieve the desired outcomes and maximize yield for crypto tokens.