Chain-Specific

WETH (Wrapped Ether)

An ERC-20 token wrapping ETH 1:1 to make it compatible with DeFi protocols that require the ERC-20 standard.

WETH (Wrapped Ether) — WETH (Wrapped Ether) is an ERC-20 token that represents ETH on a 1:1 basis. Since native ETH predates the ERC-20 standard and does not conform to it, WETH wraps ETH into a standardized token format that can interact with DeFi smart contracts, DEX liquidity pools, and any protocol expecting ERC-20 tokens.

What Is WETH?

ETH is Ethereum's native currency, created before the ERC-20 token standard was established. Many DeFi protocols and DEXs are built to interact exclusively with ERC-20 tokens. WETH solves this incompatibility by wrapping ETH into an ERC-20 contract. Users deposit ETH and receive an equal amount of WETH, which can then be used across DeFi.

The WETH contract is one of the oldest and most trusted contracts on Ethereum, holding millions of ETH in deposits.

WETH in DeFi

WETH is used in Uniswap and other DEX liquidity pools, as collateral on lending platforms like Aave and Compound, in NFT marketplace transactions (OpenSea historically priced bids in WETH), and for orderbook DEX trading. Most DeFi interfaces handle ETH-to-WETH conversion automatically, but understanding the distinction helps when troubleshooting transactions.

WETH Across Chains

When ETH is bridged to Layer 2 networks or other chains, it typically arrives as a wrapped version. WETH on Arbitrum, Base, and Optimism represents ETH bridged from mainnet through each chain's canonical bridge. The mechanics are similar to mainnet WETH but involve bridge contracts rather than the original WETH contract.

Related Terms

Chain-Specific

Wrapped SOL (wSOL)

An SPL-token version of SOL with a 1:1 peg, required for interacting with certain Solana DeFi protocols that use SPL standards.

Read definition Chain-Specific

Ethereum Mainnet

The primary Ethereum blockchain where all real-value transactions occur, as distinct from testnets like Sepolia or Goerli.

Read definition Chain-Specific

EIP-1559

Ethereum's 2021 fee market upgrade that introduced base fee burning and improved transaction fee predictability.

Read definition Chain-Specific

Canonical Bridge

The official first-party bridge for an L2 (e.g., Base Bridge, Arbitrum Bridge), typically the most secure but slowest option.

Read definition

Frequently Asked Questions

Common questions about WETH (Wrapped Ether) in cryptocurrency and DeFi.

Yes. WETH is always redeemable 1:1 for ETH through the WETH contract. There is no price deviation because wrapping and unwrapping is permissionless and instant. The peg is maintained by arbitrage.

ETH does not conform to the ERC-20 standard that most DeFi contracts expect. WETH wraps ETH into ERC-20 format for compatibility. Newer Ethereum proposals aim to make native ETH ERC-20 compatible, which would eventually make WETH unnecessary.

Yes. Wrapping and unwrapping WETH each require a transaction, costing gas. On Ethereum mainnet, this costs $1-5 depending on congestion. On Layer 2 networks, the cost is typically under $0.10.

Ready to put your knowledge into practice?

Start Boosting