What does wrapped mean in crypto

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Gbtc crypto

Currently, throughout most of the DEFI ecosystem, where wrapped tokens are used, networks use the Proof of Stake system, which can be considered less secure and more vulnerable to exploitation from hackers or thieves. Step 2: The custodian adds it to a reserve a crypto wallet whose proof is published on-chain. You can think of token standards as a set of rules a token must follow to ensure it is compatible with other Ethereum-based services and platforms. Wrapped Crypto.