Wrapped Dogecoin is a tokenized version of Dogecoin (Doge) that runs on the Ethereum (ETH) blockchain.
wDoge is compliant with ERC-20 — the basic compatibility standard of the Ethereum blockchain — allowing it to be fully integrated into the latter’s ecosystem of decentralized exchanges, crypto lending services, prediction markets, and other ERC-20-enabled decentralized finance (DeFi) applications.
Its security model, inspired by WBTC, ensures a 1:1 conversion rate between wDoge and Dogecoin.
BitGo serves as the custodian, while The Dogecoin Foundation is a member of the DAO.
Wrapped Dogecoin was officially launched on November 17, 2022.
## How Many wDoge Are There in Circulation?
There is no predetermined schedule of wDoge issuance. Instead, wDoge is minted or burned whenever users purchase or sell their tokens for Dogecoin via a system of merchants and custodians.
Because Wrapped Dogecoin is always backed by Dogecoin at a 1:1 ratio, the number of tokens in circulation is directly dependent on the amount of Dogecoin reserves in the wDoge network. The theoretical limit for the circulation supply is Dogecoins's circulating supply.
As of May 12th 2023, there are 998,409.952 wDoge in circulation.
## What Can You Do With wDoge?
wDoge gives Dogecoin holders access to Web3, DeFi, NFTs, and smart contracts.
Some examples:
- Use ERC-20 wallets.
- Use Ethereum DEXes like Uniswap.
- Buy Own The Doge pixel NFTs .
- Use rich multisig wallets e.g. Safe.
- Create DAOs to fund Dogecoin initiatives.
## What Makes Wrapped Dogecoin Unique?
By virtue of being one of the oldest and largest cryptocurrencies on the market, Dogecoin can boast a massive user base and a liquidity pool of several billion dollars. However, its blockchain functionality is relatively basic by modern standards.
Unlike Dogecoin, Ethereum was built from the ground up to support more advanced use cases by utilizing the technology of smart contracts, giving rise to an entire industry dubbed “decentralized finance.”
Ethereum and products derived from it, offer their users advanced financial instruments such as lending and insurance, which do not rely on trusted intermediaries.
By “wrapping” Dogecoin in the ERC-20 standard, wDoge enables full integration of a Dogecoin-like asset into this advanced environment of financial decentralized applications, bringing along the immense liquidity associated with the Dogecoin market.
In addition, Wrapped Dogecoin makes the job significantly easier for exchanges, wallets, and payment services that work with Ethereum: instead of having to run two separate nodes for ETH and Dogecoin networks, they can support wDoge operations with just an Ethereum node.
## Who Are the Founders of Wrapped Dogecoin?
wDoge was cofounded by BitGo and BluePepper. The DAO members are BitGo, BluePepper, The Dogecoin Foundation, and MyDoge.
BitGo, co-founded in 2013 by American computer scientist and entrepreneur Mike Belshe, is an institutional digital asset custody, trading, and financial services firm. In addition to being one of the developers of WBTC and wDoge, BitGo also serves as their original custodian — the entity that holds the Bitcoin and Dogecoin that back the wrapped assets.
BluePepper was co-founded in 2022 by part of the team that built the dogethereum bridge. Its focus is to create Dogecoin tools.