wRING - Wrapped Composable Token by RingFi

3 min readMar 11, 2022

RingFi, improved Safuu fork with a composable version of its native token.

Introduction to Wrapped Tokens

Every blockchain is different and enforces its own standards, meaning that many tokens cannot be used across other chains. Wrapped tokens were intended to allow non-native tokens to be used on different blockchains.

You can compare wrapping to a loaner car you use while yours is in the shop: a simple but effective solution to an outstanding issue.

Wrapped tokens increase liquidity and capital efficiency for exchanges as they offer users greater trading options.

If you are moving an asset like Bitcoin, we all know that the transaction times can be very long. But, moving WBTC in Ethereum Mainnet is much quicker.

Why do we need wRING?

Once you have RING in your wallet, rebases kick in every 15 minutes, and your RING amount will increase a 0.02362%.

There is not much you can do with RING once it is in your wallet rather than selling or transferring it around.

You can’t stake it efficiently in yield farming because of the automated the rebases. Masterchef contracts work taking your tokens and giving you rewards, but they are meant to receive a fixed amount of tokens and give you back the same amount when you unstake. The amount of tokens when you withdraw is larger than the amount you staked because of rebases, and that’s something that Masterchef doesn’t support completely. That led to most farming protocols not providing pools for most rebase tokens.

A similar story happens with CEXs and lending/borrowing platforms; rebases make trading more complex.

How does wRING work?

Despite the name, the tokens are not actually “wrapped’’, tokens are, however, staked in a locked vault. When you wrap, an equal value of a new token on the “destination” is generated for you. This new token then becomes a direct representation of the value of the original asset.

Also, keep in mind that you can unwrap them to remove them from this “vault” to get the original back.

We have created a system that allow the smart contract to know how much tokens you should get if you had the rebases on your main tokens.

When you wrap your RING, the amount of wRING you get is RING/index.

So, for example, 50 RING at the index of 10 brings you 5 wRING.

When you unwrap your RING, the amount of RING you get is wRING * index.

So, for example, 5 wRING at the index of 10 brings you 50 RING.

Thanks to arbitrage, the price will adjust to reflect rebases and price action on the native RING token, so simply holding wRING will effectively be the same as buying and holding RING in terms of gain but without the increase in the tokens amount.

How can I benefit from wRING

Because wRING is affected by the value of the rebases but not by the increment of tokens, wRING will become composable. This means very soon, Yield-farming, Lending and Borrowing protocols will open pools for our users to stake their wRING and, therefore, receive staking rewards while still receiving their rebases.

This is a game-changer feature and will facilitate a massive adoption of RING compared to other 3.0 DeFi protocols.

In the other hand, interest/rebases rewards are taxed as ordinary income (in the U.S. at least), which isn’t tax-efficient (10–37% depending on your income).

What if instead of getting more crypto (which is a taxable event in the U.S.) as a reward, the price of the asset you hold (wRING) increases? That is not a taxable event! However, it’s a taxable event when you sell.

Not financial advice, though.

Will wRING be available anytime soon?

wRING is a new feature never seen before in a Titano fork (Yes, we’re a Titano fork in the end). Therefore, it requires a lot of testing to be a safe addition to RingFi protocol.

Edit: The wrapped contract is already audited and it will be live 16/02/2022 12:00 UTC

Audit: https://github.com/coinscope-co/audits/blob/main/wring/audit.pdf

wRING: 0x59AE8c783eBCe3CC68ccE32C427128101fa4C405