Wrapped Asset Backing Explainer

WHAT IT DOES Wrapped Asset Backing Explainer checks whether a wrapped token is fully backed by its underlying asset and explains the collateralization status in plain English before you swap, mint, or redeem. The tool reads the wrapped token contract to fetch the token name, symbol, decimals, and total supply. It then identifies the underlying asset contract (either from user input or by detecting common functions like underlying(), asset(), or token()) and reads the balance of the underlying asset held in the wrapper's custody contract. The tool calculates the reserve ratio — the percentage of the total supply that is actually backed by the underlying asset. It also scans for proxy patterns, ownership controls, and other contract flags that could affect the token's security. The tool then uses AI to generate a plain-language explanation of the backing status: whether the token is fully backed, over-collateralized, or under-collateralized, how the backing works, what the risks are, and what would happen if the reserve were depleted. Results include the reserve ratio, backing status, token details, contract flags, and a comprehensive AI-generated explanation. The tool operates entirely read-only — no transactions are sent, no signatures are required. The AI explanation is designed to help you understand the risks of holding or trading a wrapped asset before you interact with it. HOW TO USE Connect your EVM wallet using the "Connect" button in the header. Select the network where the wrapped token is deployed from the dropdown menu. Enter the wrapped token contract address you wish to analyze. Optionally enter the underlying asset address if you know it — if not, the tool will attempt to detect it automatically. Enter the token name (optional) for better context. Click "Check asset backing" to begin the analysis. The tool fetches the wrapped token metadata, identifies the underlying asset, reads the reserve balance, calculates the reserve ratio, and sends the data to the AI for a plain-English backing explanation. Results appear within seconds, showing the wrapped token, chain, backing status, reserve ratio, total supply, underlying reserve, proxy status, owner controls, and a comprehensive AI-generated explanation written in clear, conversational language. RESERVE RATIO DETECTION AND AI-GENERATED BACKING EXPLANATION The tool uses a multi-step process to analyze wrapped asset backing. First, it reads the wrapped token's ERC-20 metadata — name, symbol, decimals, and total supply — using the standard ERC-20 interface. Second, it attempts to identify the underlying asset by checking for common function signatures: underlying(), asset(), and token(). If the user provided an underlying address, the tool uses that directly. Third, it reads the underlying asset balance held by the wrapper contract using balanceOf(address). Fourth, it calculates the reserve ratio as (underlying balance / total supply) × 100%. The tool then classifies the backing status: fully backed (≥99.5%), over-collateralized (≥90%), adequately backed (≥80%), under-collateralized (