What is a Wrapped Token? 

A Wrapped Token is a token that represents a specific amount of a underlying asset, usually another cryptocurrency, and is pegged to its value. For example, Wrapped Bitcoin (WBTC) is a token that represents one Bitcoin, allowing users to use Bitcoin in various DeFi protocols.

Wrapped tokens offer a convenient way to utilize underlying assets in DeFi protocols, enhancing liquidity and usability. WBTC is a great example, allowing users to leverage Bitcoin's value in a variety of applications.