*This article is written and intended for informational purposes only.
About Wrapped Cryptopunks
Although NFTs have been around since 2017, they have been extremely popular outside the crypto world only recently.
You must already know what an NFT or Non-Fungible Token is.
In this article, we’ll talk about one of the NFT series creating a buzz in the NFT space called Wrapped Cryptopunks.
But first, what are Cryptopunks?
Cryptopunks vs Wrapped Cryptopunks
Cryptopunks are collectible pieces of digital art that have been algorithmically generated each with their own traits and distinctive attributes.
There are over 10,000 Cryptopunks and each punk is completely unique because of the combination of certain accessories and traits.
For the record, the most expensive CryptoPunk ever sold is punk #5822 for a staggering price of $23 million in February 2022.
Under the ownership of Matt Hall and John Watkinson, Larva Labs is heralded as one of the companies credited with pioneering the blockchain and digital art revolution.
In 2017, they launched Cryptopunks, a collection of 10,000 unique digital characters for free when NFTs were virtually non-existent.
The project, which was just an experiment into the value of NFTs and digital art, quickly became one of the most popular NFT collections in the world.
Now, they are considered to be one of the pioneers of the blockchain and digital art revolution in the world.
In 2020, the first Wrapped Cryptopunks were created.
Their primary purpose was to provide a way to make possible the availability of Cryptopunks on blockchains other than Ethereum while also keeping the benefits of the original CryptoPunk.
At the moment there are 777 Cryptopunks wrapped into an ERC-721 smart contract and a total of 133 unique addresses that are holding the WPUNKS NFT.
Cryptopunks are initially based on the ERC-20 token format, which is the most common format for tokens on the Ethereum blockchain.
However, Wrapped Cryptopunks are ERC-721 tokens. ERC-721 is a more recent token standard that was specifically designed for non-fungible tokens (NFTs).
Let’s go a bit deeper into the definition of wrapped NFTs.
What is a Wrapped Token?
A wrapped token is a tokenized version of a digital asset which makes it possible for the asset to exist on a different blockchain
The point of “wrapping” a token is to make it available on other blockchains so as to have the same benefits of that specific blockchain.
A wrapped token is also pegged to the value of the asset it represents. The original asset in the form of a native token on a blockchain, is placed in a wrapper.
Think of the wrapper as a digital vault.
So that the enclosed version can be minted and available for other purposes on a different blockchain.
The best part is that you can redeem the token back to its original through a process called Unwrapping.
Take, for instance, a stablecoin such as Tether or USDC.
Stablecoins have a derivative value from fiat currencies just like how USDT is pegged to the value of the US dollar.
In the case of wrapped NFTs, the digital asset is usually a native token of a particular blockchain existing on another blockchain with more benefits such as lower fees, faster speeds, and increased liquidity.
How Do Wrapped Cryptopunks Work?
For wrapped tokens to work in general, there has to be a custodian to hold an equivalent amount of the cryptocurrency.
The custodian in most cases can be a DAO, multicurrency wallet, or merchant. They should hold the equivalent amount of the asset to be minted on hold.
To wrap a CryptoPunk, follow the steps below:
- Get Your Proxy Wallet:
Obtain a proxy wallet to interact with the blockchain.
- Send Transaction via WrappedPunk Contract (if needed):
If required, initiate a transaction through the WrappedPunk contract.
- View Contract on Etherscan:
Visit the contract on Etherscan to perform actions.
- Call Function “proxyInfo”:
Call the function “proxyInfo” and check if the displayed address is 0x00…0000.
- Deploy Proxy Wallet (If Address is 0x00…0000):
If the address is 0x00…0000, proceed to deploy a proxy wallet and get its address.
- Save Proxy Wallet Address (If Address is Not 0x00…0000):
If the address is not 0x00…0000, save the proxy wallet address and move to section ‘B’.
- Register Proxy Wallet:
In the ‘Write Contract’ tab, connect your wallet and call function “registerProxy.” Wait for confirmation.
- Retrieve Proxy Wallet Address:
In the ‘Read Contract’ tab, call function “proxyInfo” again to retrieve your proxy wallet address.
- Transfer Your CryptoPunk:
Initiate a transaction via the CryptoPunk contract. Connect your wallet and call function “transferPunk” with parameters:
“to”: Your proxy wallet address
“punkIndex”: Your CryptoPunk token ID
- Mint Your WrappedPunk:
Initiate a transaction via the WrappedPunk contract. Connect your wallet and call function “mint” with the parameter:
“punkIndex”: Your CryptoPunk token ID
- View Your WrappedPunk on OpenSea:
Once the process is complete, your CryptoPunk is wrapped. You can now view and trade your WrappedPunk on platforms like OpenSea.
Follow these steps carefully to successfully wrap your CryptoPunk and make it available as a WrappedPunk.
Simply put, the main aim of wrapping Cryptopunks in the ERC-721 format is they can be more easily traded and stored on decentralized exchanges and wallets.
To view a collection of all Wrapped Punks, go here: Wrapped Cryptopunks