According to recent news, among different DeFi programs, a project has been newly formed in order to robust DeFi financial industry. In this article we are going to introduce Wanchain project.
Wanchain project ; a DeFi protocol
Wanchain is a new DeFi protocol, which aims to expand cryptocurrencies market by connecting with various private and public blockchains. Generally, transactions between different blockchains are made through the hands of a medium or third party. Therefore, Wanchain plans to remove third parties. This project consists of three main components: Transaction record, transferring transaction information and a record transactions requests on the main blockchain. All these components participate in related process when a cryptocurrency is being transferred in another blockchain.
Wanchain network has a native crypto called “WAN”. It is used for protocol governance and to pay transaction fees. In addition, Validator nodes also need WAN to stake it in order to verify network transactions. Wanchain protocol is set to create 210 million WAN tokens. By now, there are 170 million tokens in circulation.
Wanchain and XRP
According to official announcements, Wanchain plans to establish a bridge between Ripple ledger and Ethereum Proof-of-Stake network so as transferring XRP in Ethereum ecosystem. This means that if a user wants to transfer XRP on Ethereum, it will be moved to Wanchain’s ledger and locked up there. Then, equivalent to the same amount of XRP, the protocol will generate a cryptocurrency called wanXRP in Ethereum and transfer it to Ethereum blockchain. If user wants to return the wanXRP tokens to the Ripple network, Wanchain would burn these tokens and release XRP off its ledger in return.