# Wrappers

### Wrapping and unwrapping

Users can wrap an approved fiat-backed stablecoin into its jFIAT equivalent and vice versa, at a 1-to-1 ratio, without any fee.

> **Example**
>
> A user can wrap 10,000 EURe into 10,000 jEUR, or unwrap 1,000 jCAD into 1,000 CADC.

{% hint style="info" %}
Thanks to the 1-to-1 wrapping and unwrapping ratio, fiat-backed stablecoins, and their jFIATs equivalent inherit from their respective features: Wrappers confer to jFIATs a fiat on and off-ramp, and to fiat-backed stablecoins access to deep on-chain liquidity.
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{% hint style="info" %}
The Wrappers reduce the market risk of jFIATs by introducing collateral in fiat by proxy. jFIATs minted through the Wrappers are backed by their equivalent fiat-backed stablecoins, backed by real fiat.
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### Liquidity

There is no limit for wrapping a fiat-backed stablecoin into a jFIAT; however, the unwrapping liquidity is limited to the number of fiat-backed stablecoins that have been wrapped.

> **Example**
>
> Users have wrapped 50,000 XSGD into 50,000 jSGD. Therefore, a maximum of 50,000 jSGD can be unwrapped.

### Fixed exchange rate jFIAT

Fixed exchange rate jFIATs are stablecoins tracking the price of currencies pegged to another one. 

> **Example**
>
> The Franc CFA (XAF and XOF) is pegged to the Euro, with a EUR/XAF exchange rate of approximately 656.

Fixed exchange rate jFIATs are using the Wrappers contract, with the difference that the ratio is not 1-to-1, but 1-to-X, where X is the exchange rate.

> **Example**
>
> A user can wrap 100 jEUR into 65,600 jXAF or jXOF.

### Collateral lent

The collateral is lent on money markets. The protocol's treasury receives all the interests generated.

{% hint style="info" %}
Lending the collateral may reduce unwrapping-side liquidity since borrowed assets cannot be withdrawn from the money market.
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{% hint style="warning" %}
 🚧 The module for lending the collateral on money market is under development.
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### Pause

The governance can pause the wrapping of a Wrapper.