Wrapped AstraZeneca xStock (WAZNX) Cryptocurrency Market Data and Information

What is Wrapped AstraZeneca xStock (WAZNX)?

Wrapped AstraZeneca xStock (WAZNX) is a tokenized version of the AstraZeneca stock (AZN) designed to bridge the gap between traditional equities and the decentralized finance (DeFi) ecosystem. xStocks, in general, were created to democratize investing by removing barriers such as geographical restrictions, brokers, and high costs. WAZNX, as a wrapped xStock, is designed to be compatible with various DeFi protocols. This “wrapped” nature means it doesn’t rebase, a mechanism where the token supply is adjusted, making it more suitable for integration with DeFi applications that require a stable token supply.

WAZNX represents a 1:1 backing by the underlying AstraZeneca stock, meaning that each WAZNX token is designed to correspond to a share of AZN. This structure provides users with a digital asset that mirrors the value of a publicly traded company while offering the benefits of blockchain technology. The key objective behind xStocks, as a whole, is to provide easy access to a wide range of US Stocks and ETFs to regular users through both centralized and decentralized exchanges.

How Does Wrapped AstraZeneca xStock (WAZNX) Work?

The core functionality of WAZNX revolves around the tokenization of traditional stock assets. The process involves purchasing and holding AstraZeneca shares in a custodial account. Then, an equivalent number of WAZNX tokens are minted and distributed. The crucial aspect is the 1:1 backing, ensuring that each WAZNX token corresponds to one actual share of AstraZeneca stock held in custody.

As a wrapped xStock, WAZNX operates on a blockchain network. This allows for fractional ownership and faster, more cost-effective transactions compared to traditional stock trading. The “wrapped” aspect refers to the token’s design specifically for DeFi integration. Rebasing tokens, which automatically adjust the token holder’s balance, can cause issues in DeFi applications. By avoiding rebasing, WAZNX maintains a stable token supply, making it easier to integrate with lending platforms, decentralized exchanges (DEXs), and other DeFi protocols.

The underlying mechanism involves smart contracts that manage the minting and burning of WAZNX tokens. When AstraZeneca shares are purchased, new WAZNX tokens are minted. Conversely, when WAZNX tokens are redeemed for AstraZeneca shares, the corresponding tokens are burned, reducing the total supply. This process maintains the 1:1 peg between the token and the underlying asset.

Wrapped AstraZeneca xStock (WAZNX) Key Features and Technology

Key Features:

• 1:1 Backing: Each WAZNX token is backed by one share of AstraZeneca stock, providing a direct link to the value of the underlying asset.
• DeFi Compatibility: Being a wrapped token, WAZNX is designed for seamless integration with various DeFi platforms and applications.
• Fractional Ownership: Allows users to own fractions of AstraZeneca shares, making it more accessible to investors with smaller capital.
• Accessibility: Enables access to US Stocks and ETFs for users who might face limitations due to geographical restrictions or traditional brokerage barriers.
• Non-Rebasing: The token supply remains stable, ensuring smooth operation within DeFi ecosystems.
• Compliance: xStocks are designed to be compliant with EU regulations.

Technology:

WAZNX leverages blockchain technology, specifically smart contracts, to manage the minting, burning, and transfer of tokens. The smart contracts are responsible for ensuring the 1:1 peg between the WAZNX token and the underlying AstraZeneca share. They also facilitate transparent and secure transactions on the blockchain.

The selection of the blockchain network on which WAZNX is built is crucial. The choice influences transaction speeds, fees, and overall scalability. The specific details of the blockchain used can impact user experience and adoption.

What is Wrapped AstraZeneca xStock (WAZNX) Used For?

WAZNX primarily serves as a gateway for investors to gain exposure to AstraZeneca stock within the cryptocurrency and DeFi space. It allows users to:

• Invest in AstraZeneca shares without traditional brokerage accounts: WAZNX eliminates the need for traditional stock trading accounts, making it easier for individuals to invest in AstraZeneca.
• Participate in DeFi protocols: Users can use WAZNX as collateral for loans, provide liquidity on decentralized exchanges, and earn yield through various DeFi strategies.
• Diversify their cryptocurrency portfolio: WAZNX offers a way to diversify cryptocurrency portfolios by adding exposure to a traditional stock asset.
• Access fractional ownership: WAZNX enables users to own fractions of AstraZeneca shares, making it more affordable for those with limited capital.
• Hedge against market volatility: While still subject to market fluctuations, WAZNX provides a link to a tangible asset and can act as a hedge against the volatility of certain cryptocurrency assets.

By enabling the tokenization of stocks, WAZNX contributes to the broader trend of bringing real-world assets (RWAs) onto the blockchain. This integration has the potential to unlock new opportunities for both traditional finance and the cryptocurrency industry.

How Do You Buy Wrapped AstraZeneca xStock (WAZNX)?

Buying WAZNX typically involves using a cryptocurrency exchange that lists the token. The process generally includes the following steps:

• Choose an exchange: Identify a centralized or decentralized exchange that offers WAZNX. Popular options may include exchanges that support xStocks.
• Create an account: Register an account on the chosen exchange and complete any necessary KYC (Know Your Customer) verification processes.
• Deposit cryptocurrency: Deposit a supported cryptocurrency, such as ETH or USDT, into your exchange account. This cryptocurrency will be used to purchase WAZNX.
• Place an order: Navigate to the WAZNX trading pair (e.g., WAZNX/USDT) and place an order to buy WAZNX using the deposited cryptocurrency. Choose between a market order (executed immediately at the current price) or a limit order (executed when the price reaches a specified level).
• Withdraw WAZNX: Once the order is filled, withdraw the WAZNX tokens to a compatible cryptocurrency wallet for secure storage.

Possible Exchanges: Because WAZNX is a type of xStock, look for exchanges that feature other xStock or wrapped assets.

How Do You Store Wrapped AstraZeneca xStock (WAZNX)?

Storing WAZNX requires a compatible cryptocurrency wallet. The choice of wallet depends on your security needs and preferred level of accessibility.

• Software Wallets (Hot Wallets): These wallets are applications that can be installed on your computer or smartphone. They are convenient for everyday use but are considered less secure than hardware wallets.
  • Desktop Wallets: Examples include wallets that support the Ethereum blockchain, as WAZNX is often an ERC-20 token.
  • Mobile Wallets: Similar to desktop wallets, but designed for mobile devices.
  • Browser Extension Wallets: These wallets integrate directly into your web browser.
• Hardware Wallets (Cold Wallets): Hardware wallets are physical devices that store your private keys offline, providing a higher level of security.
  • Examples of popular hardware wallets are Ledger and Trezor. These wallets support a wide range of cryptocurrencies, including ERC-20 tokens like WAZNX.
• Exchange Wallets: While not recommended for long-term storage, you can technically store WAZNX on the exchange where you purchased it. However, this carries the risk of the exchange being hacked or experiencing other security issues.

When choosing a wallet, consider factors such as security features, user interface, supported cryptocurrencies, and backup options. Always back up your wallet’s seed phrase in a secure location to prevent loss of funds.

Future Outlook and Analysis for Wrapped AstraZeneca xStock (WAZNX)

The future outlook for WAZNX is closely tied to the broader adoption of tokenized assets and the growth of the DeFi ecosystem. As more investors seek exposure to traditional assets within the cryptocurrency space, WAZNX could see increased demand. Key factors influencing its future include:

• Regulatory developments: Clear and supportive regulations for tokenized assets could significantly boost adoption.
• DeFi innovation: Continued development of DeFi protocols that integrate with tokenized stocks will increase the utility of WAZNX.
• Partnerships and integrations: Collaborations with other DeFi platforms and exchanges could expand the reach and accessibility of WAZNX.
• Market sentiment towards AstraZeneca stock: The performance of the underlying AstraZeneca stock will directly impact the value and attractiveness of WAZNX.

Analysis suggests that the long-term success of WAZNX depends on its ability to maintain its 1:1 peg with AstraZeneca stock, provide a secure and user-friendly experience, and comply with evolving regulatory requirements. The token’s potential lies in bridging the gap between traditional finance and DeFi, offering investors a new way to access and interact with established assets.

References

• CoinGecko: https://www.coingecko.com
• CoinDesk: https://www.coindesk.com