Wrapped Filecoin (WFIL) is an ERC-20 token that represents Filecoin (FIL) on the Ethereum blockchain. Each WFIL token is backed 1:1 with FIL, meaning every WFIL in circulation is supported by an equivalent amount of FIL stored in a reserve. This allows Filecoin to be used in Ethereum-compatible decentralised applications (dApps) and the broader DeFi ecosystem, enhancing its liquidity and interoperability.

Wrapped Filecoin (WFIL) extends the utility of FIL by making it compatible with Ethereum-based DeFi applications. Users can leverage WFIL for various purposes, including trading on decentralised exchanges (DEXs), participating in liquidity pools, and using it as collateral for lending and borrowing on DeFi platforms. The conversion of FIL to WFIL facilitates its integration into platforms that natively support ERC-20 tokens, thereby expanding its functionality and use cases​.