Add multiwrap design doc

Author: Krishang Nadgauda

contracts/multiwrap/multiwrap.md

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+# Multiwrap design document.
+
+This is a live document that explains what the [thirdweb](https://thirdweb.com/) `Multiwrap` smart contract is, how it works and can be used, and why it is written the way it is.
+
+The document is written for technical and non-technical readers. To ask further questions about thirdweb’s `Multiwrap`, please join the [thirdweb discord](https://discord.gg/thirdweb) or create a github issue.
+
+---
+
+## Background
+
+The thirdweb Multiwrap contract lets you wrap arbitrary ERC20, ERC721 and ERC1155 tokens you own into a single wrapped token / NFT.
+
+The `Multiwrap` contract is meant to be used for bundling up multiple assets (ERC20 / ERC721 / ERC1155) into a single wrapped token, which can then
+be unwrapped in exchange for the underlying tokens.
+
+The single wrapped token received on bundling up multiple assets, as mentioned above, is an ERC721 NFT. It can be transferred, sold on any NFT Marketplace, and
+generate royalties just like any other NFTs.
+
+### Why we’re building `Multiwrap`
+
+We're building `Multiwrap` for cases where an application wishes to bundle up / distribute / transact over *n* independent tokens all at once, as a single asset. This opens
+up several novel NFT use cases.
+
+For example, consider a lending service where people can take out a loan while putting up an NFT as a collateral. Using `Multiwrap`, a borrower can wrap their NFT with
+some ether, and put up the resultant wrapped ERC721 NFT as collateral on the lending service. Now, the bowwoer's NFT, as collateral, has a floor value.
+
+## Technical Details
+
+The `Multiwrap` contract itself is an ERC721 contract. It lets you wrap arbitrary ERC20, ERC721 and ERC1155 tokens you own into a single wrapped token / NFT. This means
+escrowing the relevant ERC20, ERC721 and ERC1155 tokens into the `Multiwrap` contract, and receiving the wrapped NFT in exchange. This wrapped NFT can later be 'unwrapped'
+i.e. burned in exchange for the underlying tokens.
+
+### Wrapping tokens
+
+To wrap multiple ERC20, ERC721 or ERC1155 tokens as a single wrapped NFT, a token owner must first approve the relevant tokens to be transfered by the `Multiwrap` contract, and the token owner must then specify the tokens to wrapped into a single wrapped NFT. The following is the format in which each token to be wrapped must be specified:
+
+```solidity
+/// @notice The type of assets that can be wrapped.
+enum TokenType { ERC20, ERC721, ERC1155 }
+
+struct Token {
+    address assetContract;
+    TokenType tokenType;
+    uint256 tokenId;
+    uint256 amount;
+}
+```
+
+| Parameters | Type | Description |
+| --- | --- | --- |
+| assetContract | address | The contract address of the asset to wrap. |
+| tokenType | TokenType | The token type (ERC20 / ERC721 / ERC1155) of the asset to wrap. |
+| tokenId | uint256 | The token Id of the asset to wrap, if the asset is an ERC721 / ERC1155 NFT. |
+| amount | uint256 | The amount of the asset to wrap, if the asset is an ERC20 / ERC1155 fungible token. |
+
+Each token in the bundle of tokens to be wrapped as a single wrapped NFT must be specified to the `Multiwrap` contract in the form of the `Token` struct. The contract handles the respective token based on the value of `tokenType` provided. Any incorrect values passed (e.g. the `amount` specified to be wrapped exceeds the token owner's token balance) will cause the wrapping transaction to revert.
+
+Multiple tokens can be wrapped as a single wrapped NFT by calling the following function:
+
+```solidity
+function wrap(
+    Token[] memory wrappedContents,
+    string calldata uriForWrappedToken,
+    address recipient
+) external payable returns (uint256 tokenId);
+```
+
+| Parameters | Type | Description |
+| --- | --- | --- |
+| wrappedContents | Token[] | The tokens to wrap. |
+| uriForWrappedToken | string | The metadata URI for the wrapped NFT. |
+| recipient | address | The recipient of the wrapped NFT. |
+
+When wrapping multiple assets into a single wrapped NFT, the assets are escrowed in the `Multiwrap` contract until the wrapped NFT is unwrapped.
+
+### Unwrapping the wrapped NFT
+
+The single wrapped NFT, received on wrapping multiple assets as explained in the previous section, can be unwrapped in exchange for the underlying assets. To unwrap a wrapped NFT, the wrapped NFT owner must specify the wrapped NFT's tokenId, and a recipient who shall receive the wrapped NFT's underlying assets.
+
+```solidity
+function unwrap(
+    uint256 tokenId,
+    address recipient
+) external;
+```
+
+| Parameters | Type | Description |
+| --- | --- | --- |
+| tokenId | Token[] | The token Id of the wrapped NFT to unwrap.. |
+| recipient | address | The recipient of the underlying ERC1155, ERC721, ERC20 tokens of the wrapped NFT. |
+
+When unwrapping the single wrapped NFT, the wrapped NFT is burned.
+
+### EIPs supported / implemented
+
+The `Multiwrap` contract itself is an ERC721 contract i.e. it implements the [ERC721 standard](https://eips.ethereum.org/EIPS/eip-721). The contract also implements receiver interfaces for ERC721 and ERC1155 so it can receive, and thus, escrow ERC721 and ERC1155 tokens.
+
+The contract also implements the [ERC2981](https://eips.ethereum.org/EIPS/eip-2981) royalty standard. That means the single wrapped token received on bundling up multiple assets can generate royalties just like any other NFTs.
+
+
+## Limitations
+
+Given the same interface for `wrap` and `unwrap`, the contract needs to be optimized for gas i.e. consume as much less gas as possible.
+
+## Authors
+- [nkrishang](https://github.com/nkrishang)
+- [thirdweb team](https://github.com/thirdweb-dev)