Wrapped crypto assets such as the wrapped Cardano (cbADA) and wrapped Litecoin (cbLTC), launched by Coinbase, enable interoperability by allowing Cardano (ADA) and Litecoin (LTC) to be used in Ethereum-based DeFi apps such as Uniswap, PancakeSwap and Aerodrome, as well as in lending protocols such as Aave, Compound, and Morpho.

Quotes that support claims

Holders will be able to use ADA across Ethereum-based DeFi platforms like Uniswap, PancakeSwap, and Aerodrome Finance (AERO), a feature that is not natively available on Cardano.

Wrapping crypto assets in this way, by locking the underlying assets with Coinbase and minting the respective tokens on Base, enables interoperability, allowing cryptocurrencies like ADA and LTC to be used in DeFi apps on the Layer 2 network, such as DEXs Aerodrome and Uniswap as well as lending protocols Aave, Compound and Morpho.