What Is Wrapped Ether (WETH) and How to Wrap It?

TL;DR
Wrapped Ether (WETH) is an ERC-20 token pegged 1:1 to Ether (ETH), enabling compatibility with Ethereum-based DeFi platforms. Wrapping ETH into WETH unlocks staking, liquidity provision, and NFT trading opportunities, while unwrapping reverses the process without extra costs beyond gas fees. Popular methods include using MetaMask, Uniswap, or smart contract interactions.

Introduction

Ethereum’s native currency, ETH, lacks ERC-20 functionality—essential for most DeFi applications. WETH bridges this gap, allowing ETH holders to participate fully in Ethereum’s decentralized ecosystem.

What Is Wrapped Ether (WETH)?

WETH is an ERC-20 version of ETH, compatible with DApps requiring token standards like MetaMask, Uniswap, and Aave. Key features:

• 1:1 Peg: Backed by locked ETH reserves.
• Use Cases: Liquidity pools, NFT trading, crypto lending.
• No Gas Payments: Unlike ETH, WETH can’t pay network fees.

👉 Discover how WETH enhances DeFi strategies

Why Wrap ETH?

ETH’s non-ERC-20 design limits DeFi integration. Wrapping solves:

1. DApp Compatibility: ERC-20 tokens are required for most smart contracts.
2. Liquidity Provision: Enables ETH use in decentralized exchanges (DEXs).
3. Collateralization: Facilitates borrowing/lending on platforms like Aave.

How to Wrap ETH

Method 1: Uniswap

1. Connect wallet to Uniswap.
2. Swap ETH → WETH (1:1 ratio).
3. Pay gas fees and confirm.

Method 2: MetaMask

1. Select “Swap” in MetaMask.
2. Choose WETH as the output token.
3. Review and execute the swap.

Note: Manual wrapping via smart contracts is possible but less user-friendly.

Unwrapping WETH

Reverse the process:

1. Swap WETH → ETH on Uniswap/MetaMask.
2. Binance: Convert WETH to ETH (but not vice versa).

WETH on Other Blockchains

ETH exists as wrapped tokens on chains like BSC (WETH) and Solana (wETH) for cross-chain interoperability. Use bridges cautiously—research security risks.

WETH Price Stability

The 1:1 convertibility mechanism ensures price parity with ETH via arbitrage opportunities.

Popular DeFi Apps for WETH

• Uniswap: Liquidity pools.
• Aave: Lending/borrowing.
• OpenSea: NFT transactions.

👉 Explore top WETH-integrated platforms

FAQ

1. Is WETH safer than ETH?

Yes—it’s fully backed by ETH reserves audited via smart contracts.

2. Can I wrap ETH without gas fees?

No. All transactions require Ethereum gas fees.

3. Why does WETH exist?

To make ETH compatible with ERC-20 DApps.

4. Can I mine WETH?

No—it’s minted only by locking ETH.

5. What’s the difference between WETH and stETH?

stETH is for staking (Lido), while WETH is for general DeFi use.

Conclusion

WETH is indispensable for Ethereum’s DeFi ecosystem, offering flexibility and utility beyond native ETH. For most users, swapping via DEXs is the simplest way to access WETH’s benefits.