*obligatory not financial advice*
What is ctez? And what's the point of it?
Tezos is a proof of stake smart contract blockchain that has a brilliant on-chain governance that makes it possible for the blockchain to become pretty much anything that the XTZ holders want. Everyone can take part in governance without locking their coins by delegating their tez to a baker, who will then vote on protocol changes on behalf of them. In exchange both delegators and bakers earn staking rewards with currently 5-6% APY.
Now that DeFi is really starting to bloom on Tezos and with new dApps launching each week, there is more and more XTZ in applications and liquidity pools. So who is taking part in governance? Who is earning the baking rewards?
This is what wrapped tez is needed for. By using ctez, you can still hold your XTZ and delegate it to earn rewards, while minting a token that has the same value as XTZ that you can use for DeFi instead. This ctez tokens can currently only be used on PlentyDeFi, but more dApps will likely add it soon.
To wrap your tez you only have to create an "oven" on the ctez app. There you can leave your tez as collateral and you can delegate it to any baker you want and earn rewards. You can then mint 94% of your collateral as ctez and use it however you want. Your collateral will still earn baking rewards and you can get it back by burning your ctez. There is no fees involved other than the regular gas fees.
This is a big step for the entire Tezos ecosystem and its DeFi space will likely grow further thanks to it!
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