Winding down is the process of unwrapping tokens back to their original form in DeFi.
For example, if a user is holding $fSNOW and wants to return it to its original form of $USDC, they will need to go through several complex steps.
First, the user will need to take $fSNOW from the Snowswap exchange and redeem it for $fUSDC on a platform like Harvest Finance, an automated yield farming protocol. From there, they will be able to exchange $fUSDC for $USDC.
In other words, the difference between winding down and a simple token unwrapping is that the former involves multiple tokens along the way, while the latter is an action that typically involves the usage of just two tokens.
Author: Harvest Collective.
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