Why is wrapped LEO worth more than LEO?

Weird evolution

It has been an evolution I have seen happening for a while now. WLEO is slowly running away in price from LEO itself. And the gap is widening. I find that very weird. In theory and in practice, it is actually the same thing, WLEO and LEO. It is just "wrapped", so it can be transferred on another chain. Nothing less, nothing more.

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In fact LEO should be worth more than WLEO, because there is a cost to unwrap the WLEO back into LEO. But I am probably missing something here... Or am I not?

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I hope someone can elaborate on this and explain to me why this price gap is there? Be my guest!

Maybe there is money in this?

If there is no real reason for this, who is stopping us from wrapping a shitload of LEO and selling it. The difference is big enough to do some arbitrage on this.
Or again, am I missing something?

Sincerely,

Pele23

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3 comments
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I have always wondered what WLEO is and I have learnt it now, thanks!

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wLEO is wrapped LEO on ETH and there are fees involved. So the prices might not correct that much unless there is enough liquidity and a person is willing to arbitrage the price.

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Arbitrage opportunities like this one are common, I guess that the volume is not worth it to do all the arbitrage moves, but maybe I am wrong. In any case, I have a feeling that $leo's volume will grow in the next few months.

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