SPL Token Wrap Program

This program enables the creation of "wrapped" versions of existing SPL tokens, facilitating interoperability between different token standards. If you are building an app with a mint/token and find yourself wishing you could take advantage of some of the latest features of a specific token program, this might be for you!

Features

• Bidirectional Wrapping: Convert tokens between SPL Token and SPL Token 2022 standards in either direction, including conversions between different SPL Token 2022 mints.
• SPL Token 2022 Extension Support: Preserve or add SPL Token 2022 extensions (like transfer fees, confidential transfers, etc.) during the wrapping process. Note: this requires forking and updating the CreateMint instruction.
• Transfer Hook Compatibility: Integrates with tokens that implement the SPL Transfer Hook interface, enabling custom logic on token transfers.
• Multisignature Support: Compatible with multisig signers for both wrapping and unwrapping operations.

How It Works

It supports three primary operations:

1. CreateMint: This operation initializes a new wrapped token mint and its associated backpointer account. Note, the caller must pre-fund this account with lamports. This is to avoid requiring writer+signer privileges on this instruction.

   • Wrapped Mint: An SPL Token or SPL Token 2022 mint account is created. The address of this mint is a PDA derived from the unwrapped token's mint address and the wrapped token program ID. This ensures a unique, deterministic relationship between the wrapped and unwrapped tokens. The wrapped mint's authority is also a PDA, controlled by the Token Wrap program.
   • Backpointer: An account (also a PDA, derived from the wrapped mint address) is created to store the address of the original unwrapped token mint. This allows anyone to easily determine the unwrapped token corresponding to a wrapped token, facilitating unwrapping.

2. Wrap: This operation accepts deposits of unwrapped tokens and mints wrapped tokens.

   • Unwrapped tokens are transferred from the user's account to an escrow account. Any unwrapped token account whose owner is a PDA controlled by the Token Wrap program can be used.
   • An equivalent amount of wrapped tokens is minted to the user's wrapped token account.

3. Unwrap: This operation burns wrapped tokens and releases unwrapped token deposits.

   • Wrapped tokens are burned from the user's wrapped token account.
   • An equivalent amount of unwrapped tokens is transferred from the escrow account to the user's unwrapped token account.

The 1:1 relationship between wrapped and unwrapped tokens is maintained through the escrow mechanism, ensuring that wrapped tokens are always fully backed by their unwrapped counterparts.

Permissionless design

The SPL Token Wrap program is designed to be permissionless. This means:

• Anyone can create a wrapped mint: No special permissions or whitelisting is required to create a wrapped version of an existing mint. The CreateMint instruction is open to all users, provided they can pay the required rent for the new accounts.
• Anyone can wrap and unwrap tokens: Once a wrapped mint has been created, any user holding the underlying unwrapped tokens can use the Wrap and Unwrap instructions. All transfers are controlled by PDAs owned by the Token Wrap program itself. However, it is important to note that if the unwrapped token has a freeze authority, that freeze authority is preserved in the wrapped token.

Getting Started

Prerequisites

1. Install Solana CLI

   • Ensure version matches the crate manifest.

2. Install pnpm

3. Install project dependencies:

   pnpm install

Building and Testing

1. Build the Program:

   pnpm programs:build

2. Run Tests:

   pnpm programs:test

License

This project is licensed under the Apache License 2.0.