Winding Up

What is Winding Up?

Winding up in the context of decentralized finance (DeFi) mainly refers to distributing crypto tokens among multiple initiatives in search of the highest payout.

For instance, if a cryptocurrency owner wants to convert their wBTC into Interest-Bearing BTC (ibBTC), they must first deposit wBTC to Curve Finance. The user will then be given an LP token, which they may use at Badger DAO to mint the required amount of ibBTC.

Similar to this, a user must first deposit USDC to Harvest Finance, an automated yield farming system, to convert USDC into $SNOW. Harvest Finance will then give fUSDC back as evidence of the deposit. To receive $fSNOW, the user then puts their fUSDC into Snowswap.