Disclaimer and Key Terms
All digital assets (“tokens”) which are affiliated with Rainbow Network FZCO and our platform/brand Glitter Finance (glitterfinance.org) are intended for users who are located in countries that treat tokens as utilities. Users in any countries that treat digital assets as securities are strictly prohibited from participating. As we are a decentralized (“DeFi”) and permissionless platform, we are not responsible for any violations of local laws or regulations by users who participate in our platform or trade any tokens associated with our platform, in spite of our legal warnings, and who break the Terms and Conditions on glitterfinance.org. By using our website, you acknowledge and agree to comply with all applicable laws and regulations in your jurisdiction as well as our Terms and Conditions.
A wrapped token is a derivative of a native token. Wrapped tokens are created when a user locks the original token as collateral inside the bridge vault in blockchain 1, and then what the bridge releases is a wrapped token (or a derivative of the locked collateral) on blockchain 2.
Currently, the two wrapped tokens that the Glitter Bridge produces are:
- XSOL - this is a wrapped Solana on the Algorand Network.
- XALGO - a wrapped Algo on the Solana Network.
A native swap is different from a wrapped token in that no derivative is being produced. Instead, Glitter swaps a stablecoin, such as USDC, and what is actually being swapped is the blockchain, instead of a token. This is because Glitter works with stablecoins native to the blockchains between which the crosschain swap happens. As such, one can swap USDCs on Solana for a USDCa on Algorand.