pNetwork has announced the launch of a new token, the wrapped EOS on Ethereum.
The new token is called pEOS, and is in fact an ERC-20 token that represents EOS 1:1 on the Ethereum blockchain.
This means that smart contracts running on this blockchain will be able to use a token that always retains the same value as EOS, and is exchangeable at any time with its underlying.
Conversely, there are already many more pTokens on EOS, including pBTC, pETH, and pDAI, all of which make it possible to exchange these cryptocurrencies on the EOS blockchain as well.
In fact, the goal of pNetwork’s pTokens is to make cryptocurrencies exchangeable on different blockchains, not just the native one.
For example, the token that represents 1:1 bitcoin, pBTC, exists on both ETH and EOS, but also on TELOS.
Wrapped EOS on Ethereum: the choice of pNetwork
For now, most pTokens run on the Ethereum and EOS blockchains, with the specific goal of allowing DeFi dApps on the two blockchains to interact with each other. In other words, pNetwork is building a bridge between these two blockchains, and these two otherwise separate DeFi worlds, in order to enable cross-chain exchanges through pTokens.
Although the vast majority of DeFi dApps run on Ethereum, there are also dApps on EOS, so it is useful to connect these two ecosystems.
The pTokens are obtainable by exchanging them with their underlying, and are redeemable at any time, so for every single token issued there is one of the underlying locked into the pNetwork smart contracts.
EOS is in the top 20 of the world’s most highly capitalized cryptocurrencies and is primarily used in the apps that run on its blockchain. pEOS will also allow it to be used in apps that run on Ethereum.