This space will guide you through the recently asked questions about wALGO and connect you to our Github/APIs.
What is wALGO?
Wrapped Algorand (wALGO) is a fully collateralized representation of ALGO - a collateralized staking position that unlocks the power of DeFi.
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LIQUID — wALGO will be liquid and may be used to participate in DeFi systems on Ethereum (ERC20) or Algorand (ASA).
COLLATERALIZED — Each wALGO will be collateralized with 1 Algorand native token (ALGO).
REWARDS — Locked ALGO generates staking rewards
SECURE — The suite of wALGO contracts will audited by Trail of Bits and managed by StakerDAO.
FEES — Interacting with wALGO will have no fees at launch. Changes to the fee structure will be managed by the StakerDAO governance process.
NON-CUSTODIAL - ALGO used to collateralize wALGO is managed by the user's private keys. Only the user has access to their ALGO vault.
How Will wALGO Work?
What are the Anticipated Benefits and Use Cases?
INCREASED UTILITY — as a primitive on Algorand, builders will have a liquid instrument to utilize in DeFi products (e.g. as collateral in a lending product) without reducing the amount of ALGO staked.
INCREASED YIELD — receive staking rewards while utilizing wALGO to further increase yield (e.g potential partnerships: lending on Compound, market making via Hummingbot, contributing to a liquidity pool or collateral in a Maker Vault, etc.)
How To Mint Wrapped Algorand
Please note that only vault creators with ALGO deposited can redeem wALGO. If you purchase wALGO on secondary markets and you don’t own a vault with ALGO, you will NOT be able to redeem the wALGO.
Please create a wallet on myalgo.com. You will have to accept Terms of Service, create and confirm a password, and then add a New Wallet.
2. You will then be asked to go through the process of saving your mnemonic phrase. Please keep these words secure.
3. After you create a wallet, there will be a dropdown on the top left side to find wALGO.
4. You will be asked to deploy a Vault where your ALGO will be deposited and used to generate wALGO.
5. Once your vault is deployed, you will find a box where you can wrap your ALGO. This box will contain your wALGO and ALGO balance within the wallet.
6. You can input how many ALGO you want to wrap and then enter your password to confirm.
7. Your balance should now reflect the wALGO you minted!
8. Now, the box to the left will have information about how many ALGOs you’ve locked in the Vault. This may differ from wALGO balance on the right hand box if you sent wALGO to another wallet. You can also see how many ALGO are Unlocked and can be withdrawn or wrapped for more wALGO, and pending Vault Rewards.
9. You can also send your wALGO to other wallets by circling back to the main page, clicking “Send”, and selecting wALGO in the dropdown.
wALGO was the seventh proposal submitted by the Staker Operations team (Ops) based on STKR token holder feedback. The primary purpose of the proposal was to introduce Wrapped Algorand (wALGO) to the community, receive feedback, and approve its launch.