Users can [swap] their BNB for WBNB using a [bridge]. They can use their WBNB to interact with various DeFi protocols and DApps on BSC and other chains. Users can also swap their WBNB back to BNB using the same bridge service at any time.
Advantages of WBNB include low fees, fast transactions and high performance metrics of the BNB Chain. In addition, users have access to a wide range of DeFi opportunities and innovations on the BNB Chain. Furthermore, BNB and WBNB are linked in price, meaning investors can remain invested in BNB while participating in DeFi.
Moreover, WBNB can be bridged [cross-chain] and be used on different blockchains. Users benefit from the diverse ecosystem of dApps and protocols that exist on these networks, such as DEXs, lending platforms and gaming platforms. For example, users can swap WBNB for other [ERC-20] tokens on [Uniswap] or [PancakeSwap], or use WBNB as collateral to borrow stablecoins on [Aave].
WBNB also enhances liquidity and efficiency by bridging the gap between BNB and other tokens. Users can easily wrap their BNB to WBNB and vice versa without trusted intermediaries. This reduces transaction costs, delays and risks.
Finally, WBNB is backed by an equal amount of BNB that is locked in a smart contract on the original blockchain. The smart contract ensures that there is always a 1:1 ratio between WBNB and BNB, and that users can redeem their WBNB for BNB at any time. The smart contract also prevents [double-spending], fraud or manipulation of the supply of WBNB. The process of wrapping and unwrapping BNB is transparent and verifiable by anyone on-chain.