Since its opening, Morning Moon Village received an overwhelming response. What good news, right? But because our game is a brand new one, sometimes new players can be easily confused and need some time to get used to certain game features. Some need-to-know topics include coin transferring across Bitkub Exchange, Bitkub NEXT, and Metamask because new players can easily make mistakes. In this episode, we are looking into wrapped tokens.
👉 What are KKUB and KUSDT?
We call these types of tokens “Wrapped Token”. They are a cryptocurrency token pegged to the value of another crypto since the original asset is securely wrapped by the “Wrapper” software.
👉 Why do we need wrapped tokens?
With this method, cryptocurrency can be used on different blockchain networks. Since each blockchain has a different system, users may not be able to use native cryptos built on one blockchain on another one. Wrapping these cryptos increases interoperability so that we can use them across multiple networks.
For example, KUSDT is a wrapped token of USDT (not on Bitkub Chain) to be used on the Bitkub Chain. The name "KUSDT" is from Bitkub Chain (K) + USDT.
Wrapped tokens can be used instead of traditional assets. They are of equal value to the original assets and can be converted back to the original ones (unwrap).
👉 What are the differences between pegged and wrapped tokens?
There are a few differences between pegged and wrapped tokens.
- A pegged token is an asset whose value is linked to another asset, not necessarily to crypto. USDT, a token linked to the value of the US Dollar, is an example of a pegged asset.
- A wrapped token is a cryptocurrency or a digital asset that is tied to another cryptocurrency built on a different blockchain.
👉 How can we wrap tokens?
- By using custodian wrappers, for example, users transfer BTC to the custodians. They then generate WBTC (wrapped BTC) on Ethereum, based on the amount of BTC received.
- Blockchain service providers also offer wrapper services to their users, such as Binance Bridge and Bitkub Chain Bridge, where users of each platform can wrap their own tokens.
👉 Pros and cons of wrapped tokens
More liquidity for both centralized and decentralized exchanges
For example, Pancakeswap, based on Binance Smart Chain (BSC), has gained higher liquidity from wrapped tokens since their traditional tokens cannot normally be operated on the BSC network.
Faster transaction times and lower fees
For example, WBTC can be transacted with cheaper fees and faster transaction confirmations than regular BTC.
More convenient and safer to make transactions on Dapps.
For instance, KKUB, a wrapped token of Bitkub Coin (KUB), is made compatible with various Dapps such as DeFi or GameFi like Morning Moon Village, which is more convenient than KUB. In the case of a private key hack or rug pull, we are able to pause or retrieve transactions of KKUB.
- Wrapped tokens cannot proceed via a decentralized platform with present technology; they usually need to go through a custodian. We need to heavily rely on the custodian’s trust. However, a decentralized wrapper is being developed, so we can wrap tokens without going through an intermediary in the near future.
- Wrapping tokens is also costly due to gas fee fluctuation and can cause inaccuracies in the value of tokens.
Wrapped Tokens on Bitkub Chain
KKUB, KUSDT, and KBTC are currently in use for various Dapps on Bitkub Chain, while KETH, KUSDC, and KDAI may be used in the future. Please refer to https://www.bitkubchain.com/projects.
Playing Morning Moon Village by using KKUB and KUSDT
The game currently supports only wrapped tokens: KKUB and KUSDT. Players cannot directly use crypto like KUB and USDT in-game. They need to wrap those cryptos first.
There are 2 ways to wrap tokens.
1. For Bitkub NEXT users
We highly recommend you to swap KUB <> KKUB by using Bitkub Next wallet.
It is not as complicated as other methods and poses a lower risk for wrong transactions. To do so, you only need to transfer KUB from your Bitkub account to your Bitkub NEXT wallet. The tokens will be automatically wrapped into KKUB (which can be used in the game immediately).
During the wrapping process, you do not need to do anything. The system will transfer wrapped tokens from Bitkub NEXT back to your Bitkub account, and those tokens will be automatically converted back.
Warning: This method does not support USDT<> KUSDT wrapping. You cannot transfer USDT to Bitkub Next directly!
2. For Metamask users
Users can transfer KUB or USDT to Metamask as usual (learn how to set up the network for KUB >> FAQ << and select ERC-20 for USDT transfer).
You need to wrap tokens first which can be done in 4 methods.
Method 1: via Bitkub Chain bridge (https://bridge.bitkubchain.com/)
This method allows users to swap KUB <=> KUSDT only and does not support the unwrapped USDT.
Method 3: by transferring KUB to KKUB’s official contract address
You can transfer KUB to 0x67eBD850304c70d983B2d1b93ea79c7CD6c3F6b5 and will receive KKUB in return.
Method 4: via Bitkub NEXT
Those who have KKUB or KUSDT in their Metamask can move the wrapped tokens to Bitkub NEXT before transferring to Bitkub Exchange. The tokens will be automatically unwrapped.
**IMPORTANT: KKUB and KUSDT tokens stored in Metamask cannot be directly transferred to the Bitkub Exchange. They must be first unwrapped via Bitkub NEXT or other methods mentioned above.
For more information, please visit: How to Convert and Transfer Token Between Bitkub Exchange, Bitkub NEXT, and Metamask.