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Wrapped Ether (WETH)
Wrapped Ether (WETH) is an ERC-20 token that represents Ether (ETH) on the Ethereum blockchain. Unlike ETH, WETH complies with the ERC-20 token standard, which means it can be easily used in smart contracts and decentralized applications that require ERC-20 tokens. WETH is created by depositing ETH into a smart contract, which then issues WETH in a 1:1 ratio. The wrapped version of Ether is essential for interacting with various DeFi protocols and decentralized exchanges (DEXs), where only ERC-20 tokens are accepted. WETH allows for easier token swapping and participation in liquidity pools, lending platforms, and yield farming opportunities. Users can convert their WETH back into ETH at any time, making it a flexible tool for DeFi traders and investors. WETH helps improve liquidity across the Ethereum ecosystem by standardizing Ether's compatibility with the ERC-20 token framework.
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