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Wrapping $MAG
What is wMAG?
wMAG is MAG that has been staked and wrapped. It receives the rebase rewards because it is staked, but instead of increasing in number increases in value. (wMAG is very similar to gOHM or wMEMO.) 1 wMAG will always equal 1 MAG multiplied by current index. So for example right now the index is 1.33, so 1 wMAG = 1.33 MAG.
Does wrapped MAG receive staking rewards?
Absolutely! Wrapped MAG is always staked and receiving rebase rewards. As long as it is staked it will accrue more value. Staked MAG grows in number. Wrapped MAG grows in value.
Why is wMAG useful?
wMAG allows you to easily move staked MAG between wallets and across networks (coming soon), understand how much your MAG is worth in the case of accounting needs, and participate in our diamond hand incentive program (coming soon).
wMAG is easier to move around
When you wrap MAG you make it easier to move, especially across networks. wMAG opens up the possibility of liquidity pools for MAG on networks other than Avalanche. This means more people can buy and stake MAG. We’ll be looking at adding cross-chain capability for wMAG soon. wMAG is a better price indicator for MAG As you stake MAG it increases in number, but 1 MAG is still worth 1 MAG. This can make it hard for some to understand the actual price of MAG. Remember, 1 wMAG = 1 MAG * the current index. The price of 1 wMAG then represents the worth of 1 MAG that has been staked since the beginning of the protocol. The price of MAG is right around $.93 right now, but the worth of 1 wMAG is $.93 * the current index = ~$1.23.
wMAG could be less of a tax burden
While the details aren’t exactly clear right now, some believe that each rebase event is a taxable event for those in the US or possibly in other countries. By wrapping your MAG you may be avoiding that since the rebase happens in the wrapper and not in your wallet.
wMAG allows for diamond hand rewards
Not only does wMAG open up the possibility of cross-chain liquidity for MAG but it also allows us to implement our diamond hand rewards. In the future you’ll be able to wrap your MAG and stake it in our diamond hand contract on the site to receive additional rewards over time. More to come on that soon!
How do I get wMAG?
Getting wMAG is easy.
- 1.You’ll need some MAG in your wallet (Note: you’re not able to directly wrap staked MAG. You’ll first need to unstake it to wrap it. )
- 2.Open https://app.magnetdao.finance/#/wrap, making sure you're on Avalanche and your wallet is connected.
- 3.Enter how much MAG you'd like to wrap. (Note: you'll need to approve the contract using your MAG the first time you do so.) If you ever want to unwrap MAG you can do so from the same section, by reversing the selection.
Under the “Wrap” section you’ll see what 1 WMAG is worth in MAG and vice-versa, as well as your current MAG balance in your wallet. If you click the two arrows to unwrap you’ll see how much wMAG is in your wallet.
Note: you cannot wrap staked $MAG or $bMAG directly. You'll need to unstake your $MAG or redeem your $bMAG to wrap it.
How can I view the wMAG in my wallet?
Import the wMAG token contract address to your wallet to see it listed there and your amount.
wMAG Contract Address: 0xdd4115bbbc2555d3d3053ff42ade45bebc2f2ddc
Last modified 3mo ago