> For the complete documentation index, see [llms.txt](https://docs.bits.financial/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.bits.financial/protocol-overview/wbits-token.md).

# wBITS Token

### wBITS Token

wBITS is the wrapped variant of the BITS token, specifically engineered for users intending to leverage their staked assets within decentralized finance (DeFi) ecosystems. To obtain wBITS, users can wrap their BITS tokens directly through the Bits Protocol interface, receiving an equivalent amount in return.

Unlike the rebasing BITS token, wBITS maintains a fixed supply while representing an underlying share of the total BITS pool. As BITS rebases daily to reflect Bitcoin yield, each wBITS token automatically becomes redeemable for an increasing amount of BITS over time. This share-based mechanism ensures that wBITS holders capture the full value of staking rewards without balance changes—the exchange rate between wBITS and BITS continuously appreciates. This design makes wBITS ideal for DeFi integration, enabling holders to provide liquidity on AMMs, collateralize loans, or engage in yield farming without sacrificing their underlying yield accrual.

At any point, users can unwrap their wBITS back to BITS, realizing the accumulated value increase and initiating the unstaking process if desired. This flexibility makes wBITS an essential tool for bridging the gap between secure BTC staking and DeFi, without compromising on yield potential.

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