ZEN is the cryptocurrency or native token the Horizen blockchain and network uses for payments and as a reward for verifying transactions. However, other blockchain ecosystems, decentralized finance (DeFi), and decentralized applications (dApps) support the ERC-20 standard and not ZEN. ERC-20 is the standard for creating smart contracts-enabled fungible tokens for Ethereum-based ecosystems.
Therefore, to make ZEN usable in DeFi or in other blockchain ecosystems supporting ERC-20 standards, it must be wrapped. Wrapped ZEN (WZEN) is a way to exchange the native cryptocurrency ZEN, for an ERC-20 compatible version of ZEN, which ultimately will allow for a variety of use cases, like swapping one token for another. Swapping of ZEN for WZEN occurs through a smart contract or code on the blockchain, which can store or send funds.
WZEN is an ERC-20 token standard-compliant cryptocurrency that retains the value of ZEN. WZEN can’t be used to pay gas fees on the Horizen blockchain network but has a broader range of use cases in DeFi and dApps, from swaps to DAO voting.
Smart Contract to Wrap ZEN
Use the smart contract address to wrap ZEN: 0xF5cB8652a84329A2016A386206761f455bCEDab6