WETH Price

About the coin

WETH, or Wrapped ETH, is the tokenized version of Ethereum's native cryptocurrency, ETH. It is designed to be used in Ethereum decentralized applications (dApps) and follows the ERC-20 token standards. This standardization allows WETH to be interoperable with other ERC-20 tokens, providing more utility to its holders.

Main features

WETH offers several advantages over ETH, primarily due to its compliance with the ERC-20 standard. This compliance enables WETH to be used across various networks and dApps, including staking, yield farming, lending, and providing liquidity to different liquidity pools. Unlike ETH, which is limited to the Ethereum network, WETH can be utilized on other blockchain platforms such as Binance, Polygon, Solana, and Cardano. The price of WETH is always equivalent to ETH, maintaining a 1:1 wrapping ratio.

How it works

The process of wrapping ETH involves custodians who manage the conversion. To wrap ETH, users send their ETH to a custodian, which could be a multi-signature wallet, a Decentralized Autonomous Organization (DAO), or a smart contract. After connecting a web3 wallet to a DeFi exchange, users specify the amount of ETH to wrap and execute the swap function. Once the transaction is confirmed, WETH tokens equivalent to the swapped ETH are received. On centralized exchanges, the process involves burning the deposited ETH and minting a wrapped version, which can be unwrapped by reversing the process.

What’s Next for WETH?

The future of WETH may see changes as developers aim to update ETH to comply with its own ERC-20 standards, potentially eliminating the need for WETH.