Wrapped assets · 7 min read
How Bridges Create Wrapped Tokens on Monad
Lock-and-mint, burn-and-release, and message-based bridges: how assets from other chains become wrapped tokens on Monad.
Lock and mint
The most common design locks the original asset in a contract on the source chain. A message or proof is relayed to Monad, where a contract mints the wrapped version. Reversing the process burns the wrapped token and releases the original.
Who verifies the message?
The security of a bridge depends on who confirms that the lock happened. Options include a multisig of known signers, an external validator network, light-client proofs, or optimistic schemes with a challenge window. Each has different trust assumptions.
Why it matters to holders
If the source-chain vault is drained or the verifier is compromised, the wrapped tokens on Monad may lose their backing even though they still exist. A wrapped token is only as sound as the bridge that issued it.
Before bridging, read the bridge's documentation, check audits, and look at how long redemptions take.
Monad.Cash is an independent educational site, not financial advice. Check official Monad documentation for current details.