What is WLUNA? Is WLUNA the same as LUNA? These are some of the popular questions that exist in the crypto space. You might also have similar doubts related to these tokens. Keep reading as we cover all important topics related to these tokens.
Before getting into WLUNA and LUNA, it’s essential to understand “wrapped tokens.” First, let’s have a look at it.
What Is A Wrapped Token?
Wrapped tokens allow the usage of cryptocurrency from one blockchain on another different blockchain. For example, using this wrapping feature, a cryptocurrency from the Bitcoin blockchain can now function on an Ethereum blockchain.
The price of wrapped tokens has the same value as their original token. In most cases, wrapped tokens have a “W” before the token’s ticker symbol. For example, WBTC stands for wrapped Bitcoin. Other popular wrapped tokens in the crypto market include WETH, WBNB, WTRX, and WNEAR.
Wrapped tokens allow users to conduct multi-blockchain transactions. Here, the users can take advantage of different blockchains. Wrapped Bitcoin (WBTC) is an excellent example of wrapped tokens. Here, WBTC can function in the Ethereum blockchain.
We will need this information about wrapped tokens while we discuss WLUNA. But first, let’s understand LUNA.
What Is Terra (LUNA)?
Terra, built on Cosmos SDK, is a blockchain network that creates stablecoins. The Terra stablecoins available are quickly convertible into LUNA, Terra’s native token. Moreover, you can use LUNA to stake tokens, pay network fees, and participate in governance decisions.
Terra also provides opportunities and supports their users to create their stablecoins. You can peg these stablecoins to any fiat currencies you wish. Terra’s network functions on the Tendermint Delegated-Proof-of-Stake (DPoS).
This consensus mechanism allows users to vote and elect their delegates. The elected delegates validate the next block.
LUNA had a massive price surge in 2021 and was considered one of the most demanded cryptocurrencies. As a result, LUNA created a high of $119.18. Unfortunately, LUNA couldn’t continue its growth as its price started crashing on 7th May 2022. Currently, LUNA is trading around $0.00015.
The LUNA crash wiped out $300 billion from the crypto space. After the failure of LUNA, the project got rebranded as Terra Classic. Moreover, two tokens were released; USTC and LUNC.
As you know about LUNA, now it’s time to know about WLUNA.
What Is Wrapped LUNA (WLUNA)?
WLUNA represents the LUNA on the Ethereum blockchain. However, as we discussed earlier, a wrapped token can function on other blockchains. Therefore, the value of WLUNA stays the same as the LUNA.
WLUNA, built on the ERC-20 standard, has multiple added benefits. This wrapped LUNA allows users to participate in DeFi protocols to earn yield benefits. WLUNA is available to trade on CronaSwap, SaitaSwap, and Uniswap. This token is also trading around $0.00015.
Differences Between LUNA And WLUNA
The significant difference that separates LUNA and WLUNA is the blockchain used. LUNA uses the Terra blockchain, whereas WLUNA uses the Ethereum blockchain.
Here the advantage WLUNA has is it can utilize the advantages of the Ethereum network. These advantages allow its users to participate in staking and yield farming activities that support Ethereum.
For example, you can use WLUNA to store your tokens in Ethereum-supported wallets like MetaMask. Also, you can lend and trade these tokens in Ethereum-supported DeFi applications. Moreover, you can also use WLUNA to find trading pairs that are incompatible with LUNA.
Even though WLUNA tokens have much broader applications and advantages, there are also some drawbacks.
For instance, Terra wallets don’t support WLUNA. In addition, most of the LUNA ecosystem-based activities only support LUNA.
The better option is to use both tokens based on their use cases. By doing so, you can benefit equally from Terra and Ethereum blockchains.
How To Buy LUNA And WLUNA?
Now that you know about LUNA and WLUNA, let’s take a look at how one can purchase these tokens:
How To Buy LUNA?
The most popular crypto exchanges trading LUNA tokens are Binance, KuCoin, and Kraken. These exchanges support various trading pairs associated with LUNA, like LUNA/USDT, LUNA/BUSD, LUNA/TRY, and LUNA/USDC. Binance has the highest liquidity for LUNA tokens. Therefore, it is best to use high liquidity pairs like LUNA/USDT or LUNA/BUSD.
Here, let’s consider buying LUNA from Binance. You can follow these steps:
- Go to the official website of the Binance Exchange.
- Select the ‘spot trade.’
- Load your Binance wallet with crypto tokens like BUSD/USDT.
- Then select the trading pairs LUNA/USDT or LUNA/BUSD.
- Choose USDT or BUSD as the primary spot token.
- Choose LUNA as the secondary spot token.
- Complete the trade.
After completing this trade, you’ll receive LUNA tokens. You can store these tokens in the exchange or transfer them to your other crypto wallets.
How To Buy WLUNA?
You can only buy WLUNA tokens from decentralized exchanges(DEXs). Centralized exchanges like Binance, Coinbase, and Kraken don’t support trade-wrapped tokens. The DEXs that support WLUNA include Uniswap (V3), SaitaSwap, and CronaSwap.
Among the DEXs mentioned above, Uniswap has the highest liquidity for the WLUNA tokens. Suppose you use high liquidity exchanges; then you can avoid high price variations while placing a buy order. So, let’s consider buying WLUNA from Uniswap.
Follow these steps to buy WLUNA tokens:
- Go to the official website of Uniswap.
- Select “Swap” on the top left corner of the platform.
- Connect your wallet with Uniswap. You can choose MetaMask, Coinbase Wallet, or WalletConnect.
- Load your wallet with enough cryptocurrencies. It’s better to choose cryptos like BTC, ETH, USDT, or BNB.
- Select your preferred crypto as the primary token.
- Select WLUNA as a secondary token. If you don’t find WLUNA on the list, you can copy and paste the WLUNA smart contract address.
- Finally, execute the swap.
After completing the token swap, you will receive your WLUNA in your wallet within a few minutes.
In brief, you can use LUNA to participate in crypto transactional activities on the Terra blockchain.
At the same time, you can consider WLUNA to benefit from features provided by Ethereum-based ecosystems. After all, you can choose the token that suits your purpose.