Users of the AAX cryptocurrency exchange will now be able to deposit and withdraw Wrapped Ether (wEth) tokens directly from the AAX exchange and to other supported crypto networks, as well as trade Ethereum easily with other ERC-20 compatible tokens on the platform.
Announcing the launch yesterday, the exchange said that the new move will ease transactions and interoperability between Eth and other ERC-20 compatible tokens. It will also see Ethereum miners on the Australian-based Ethermine mining pool being able to do real-time and low-cost withdrawals of their mining proceeds through the Polygon network to the AAX exchange.
“While wETH has always dominated the conversation among Ethereum miners as one of the most popular payout options for their mining efforts on Polygon Network, Ethermine, an Austrian mining pool run by Bitfly blockchain technology firm, is currently the largest mining pool for Ethereum.”
Following the integration, the exchange has become the first and only cryptocurrency exchange integrated with wrapped Ethereum tokens.
With the new integration, customers can use wrapped Eth to withdraw any cryptocurrency directly from the exchange and deposit it to any supported mining pools, decentralized applications, and other platforms without needing to first convert the cryptocurrencies they want to deposit or withdraw, which eats a chunk of the amount in transaction fees.
The wEth token is backed on a 1:1 ratio in Etherum reserves by the AAX exchange.
A wrapped Ether is an ERC-20 token technically different from the Ethereum cryptocurrency but which is used to represent the normal Ethereum on a 1:1 ratio in any transaction. To wrap Ethereum this way, a user sends an equivalent amount of Ethereum to smart contracts and receives an equivalent amount of the wEth token. Ethereum in its native form is not fully compatible with ERC-20 tokens that run on the blockchain or other chains, yet these many tokens fuel so many decentralized finance applications.
The Ethermine mining pool, which is run by Bitfly blockchain technology firm, also mines ZCash and other cryptocurrencies. The new feature also cements the AAX’s role in being at the forefront of innovations and helping users access the best solutions, said Ben Caselin, Head of Research & Strategy at AAX.
“Adding support for Wrapped ETH is not just a play on hype, but rather the implementation of a proven solution that benefits Ethereum miners, arbitrageurs and everyday traders who may want to move seamlessly between AAX Exchange and Ethereum-based DeFi platforms”
The support of wEth on the exchange will also, according to the press release, facilitate low-cost decentralized finance transactions involving any tokens and cryptocurrencies in the future when cross-chain or blockchain to blockchain transactions and transfers become the norm.