What is WLUNA? Is WLUNA the same as LUNA? These are some of the most popular questions out there in the crypto space. You may also have similar doubts regarding these tokens. Read on as we cover all the important topics related to these tokens.
Before delving into WLUNA and LUNA, it is important to understand “wrapped tokens”. Let’s take a look first.
What is a wrapped token?
Wrapped tokens allow cryptocurrency to be used from one blockchain on another, different blockchain. For example, with this wrapping feature, a cryptocurrency from the Bitcoin blockchain can now work on an Ethereum blockchain.
Wrapped tokens are priced at the same value as their original token. In most cases, wrapped tokens have a “W” in front of 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 use different blockchains. Wrapped Bitcoin (WBTC) is an excellent example of wrapped tokens. This is where WBTC can work on the Ethereum blockchain.
We will need this information about wrapped tokens while we talk about WLUNA. But first, let’s understand LUNA.
What is Terra (LUNA)?
Terra, based on the Cosmos SDK, is a blockchain network that creates stablecoins. The available Terra stablecoins can be quickly converted into LUNA, Terra’s native token. In addition, LUNA allows you to stake tokens, pay network fees, and participate in governance decisions.
Terra also provides opportunities and supports its users in creating their stablecoins. You can peg these stablecoins to any fiat currency. Terra’s network operates 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 sought-after cryptocurrencies. As a result, LUNA hit a high of $119.18. Unfortunately, LUNA failed to continue its growth as its price started to plummet on May 7, 2022. LUNA is currently trading around $0.00015.
The LUNA crash wiped $300 billion from the crypto space. After LUNA failed, the project was renamed Terra Classic. Also, two tokens were released; USTC and LUNC.
Now that you know LUNA, it’s time to learn about WLUNA.
What is Wrapped LUNA (WLUNA)?
WLUNA represents the LUNA on the Ethereum blockchain. However, as we have already discussed, a wrapped token can work on other blockchains. Therefore, the value of WLUNA remains the same as that of LUNA.
WLUNA, based on the ERC-20 standard, has several additional advantages. This wrapped LUNA allows users to participate in DeFi protocols to gain yield benefits. WLUNA can be traded on CronaSwap, SaitaSwap and Uniswap. This token is also trading around $0.00015.
Differences between LUNA and WLUNA
The main difference between LUNA and WLUNA is the blockchain used. LUNA uses the Terra blockchain while WLUNA uses the Ethereum blockchain.
This is where WLUNA has the advantage of being able to take advantage of the Ethereum network. These benefits 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-backed wallets like MetaMask. You can also lend and trade these tokens in Ethereum-backed DeFi applications. In addition, you can also use WLUNA to find trading pairs that are not compatible with LUNA.
Although WLUNA tokens have much broader applications and benefits, there are some downsides as well.
For example, Terra wallets do not support WLUNA. In addition, most of the activities based on the LUNA ecosystem only support LUNA.
The better option is to use both tokens based on their use cases. This allows you to benefit equally from Terra and Ethereum blockchains.
How do I buy LUNA and WLUNA?
Now that you know about LUNA and WLUNA, let’s take a look at how to buy these tokens:
How one Buy Luna?
The most popular crypto exchanges trading LUNA tokens are Binance, KuCoin, and Kraken. These exchanges support various trading pairs associated with LUNA, such as 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 the purchase of LUNA from Binance. You can follow these steps:
- Visit the Binance Exchange official website.
- Select “Spot Trading”.
- Load your Binance wallet with crypto tokens like BUSD/USDT.
- Then select the LUNA/USDT or LUNA/BUSD trading pairs.
- Choose USDT or BUSD as the primary spot token.
- Select LUNA as the secondary spot token.
- Complete the trade.
After completing this trade, you will receive LUNA tokens. You can store these tokens in the exchange or transfer them to your other crypto wallets.
How do I buy WLUNA?
You can only buy WLUNA tokens from decentralized exchanges (DEXs). Centralized exchanges like Binance, Coinbase, and Kraken do not support trade-packaged tokens. DEXs that support WLUNA include Uniswap (V3), SaitaSwap, and CronaSwap.
Among the above DEXs, Uniswap has the highest liquidity for the WLUNA tokens. Suppose you use exchanges with high liquidity; then you can avoid large price swings while placing a buy order. So let’s consider buying WLUNA from Uniswap.
Follow these steps to buy WLUNA tokens:
- Visit Uniswap official website.
- Select “Swap” in the top left corner of the platform.
- Connect your wallet to Uniswap. You can choose MetaMask, Coinbase Wallet or WalletConnect.
- Load up your wallet with enough cryptocurrencies. It is better to choose cryptos like BTC, ETH, USDT or BNB.
- Select your preferred crypto as the primary token.
- Select WLUNA as the secondary token. If you don’t find WLUNA in the list, you can copy and paste WLUNA’s smart contract address.
- Finally, run the swap.
After completing the token exchange, you will receive your WLUNA in your wallet within a few minutes.
last words
In short, you can use LUNA to participate in crypto transaction activity on the Terra blockchain.
At the same time, you can consider that WLUNA benefits from the features provided by Ethereum-based ecosystems. Finally, you can choose the token that suits your purpose.
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