Watt assets

Watt assets are a new type of tokenized asset within the Solana ecosystem, developed as part of the Watt protocol. These assets are designed to capitalize on market volatility and provide new yield opportunities for token holders, liquidity providers, and arbitrageurs.

Watt assets are wrapped versions of existing tokens on Solana. When a user wraps a token using the Watt protocol, they receive a corresponding wattToken (e.g. BONK becomes wattBONK) - a liquid-staked token. These watt assets represent ownership of the underlying asset while enabling additional functionality and intrinsic yield generation.

Watt assets:

• accrue value over time due to the protocol's fee structure

• are backed with the underlying asset

• are fully redeemable at any time

• do not require you to actively claim yield, similar to how liquid-staked SOL operates

• can be tax-effective — the yield is realized when you unwrap a Watt asset back into its original token, giving you flexibility in determining when the taxable event occurs*

• can be used in other DeFi protocols just like the original token

Would you like to know more about how the yield is accrued to liquid-staked Watt tokens? Head over to the Token ratio section.

*It does not constitute a tax advice. We do not know the tax implications in your specific jurisdiction. Always consult a qualified tax advisor.