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Assets / Illustrated lesson

Wrapping and unwrapping
The representation changes. Count the value carefully.

A wrapper can exchange a native asset for a token representation. Investigators should compare both sides of the operation before describing an inflow, outflow or gain.

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  1. 01

    An asset enters the wrapper

  2. 02

    A token balance increases

  3. 03

    Redemption reverses the operation

Illustrative sequence. This diagram is a teaching aid, not a captured transaction.

What to collect

  1. Exact wrapper contract and code
  2. Native transfer or deposit call
  3. Token balance and withdrawal evidence
Before drawing a conclusion

Different wrappers use different rules. A name or symbol does not guarantee one-to-one redemption.

Test the idea

An account sends 2 ETH to a wrapper and receives 2 WETH. Did it lose 2 ETH with nothing in return?

Reveal the explanation

The representation changed. Include both sides of the operation before describing its economic effect.

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